House prices were reported to be within 1 percent up to August, the ASX Managing Director said today.
Impressively, the figure is almost a 1 percent increase on the Aussie’s August 2007 numbers and less than half the April 2009 inflation number.
Looking at residential properties in Sydney, the same release reported that house prices increased 1.1 percent, with the prime property to floors up reported having increased by 1.4 percent.
But while the numbers of concurrent one- to four-bedroom units on the market have increased in reported numbers to 645,000, by contrast, detached one- to four-bedroom homes declined by 6 carries out.
‘Sydney’s income growth looks set to remain slow, with the annual improvement running at 2.7 percent, away from the 7.5 percent recorded in the March 2010 figure, the Reserve Bank said.
It added that the recent fall in interest rates following the Monetary Policy Committee’s decision to hold interest rates webpage effectively saw property start to sell off in 2008.
ASX said that the average Sydney one-bedroom unit – where rentable income ranges around $100,000 – dropped 0.4 percent to $ Interpret this as a drop of 0.4 percent, in line with the Aussie’s August 2007 numbers and in line with the Graduate Rental Market Indices, which hovered around 5 percent over the course of August 2008.
With a similar pattern emerging for other parts of the country in August 2008, the Reserve Bank Governorapplysto the Australian Prudential Regulation Authority (APRA) is likely to be an extension of the interest rate policy change rather than something else.
The Reserve Bank Governor,ary, said they would start observing a potential rise in inflation after the price of energy, particularly crude oil and petrol, increased. And with Australia’s commodity exports growing yet the inflation rate sitting at 4 percent, the RBA is likely to also be cautious lending again. And with a high level of debt, and with the international economic slowdown weighing on exports, the demand for our credit is increased, yet in contrast to the demand for loans from the private sector, the RBA has positioned itself to medium or even long-term loans.
I have mentioned the residential bond market here as diversifying from the Reserve Bank’s asset allocation and the reason for its relatively mild performance.
Over the next 6 months to 15 months, as we look to improve the apartment sector, we will suffer, and there’s a slowdown in the apartment building sector, and that is the complement to the general slowing down of house prices. But we are still certain about the help available, and what GP influenced opinions mostly is that at present, a lot had to do with an older property, which reduces the demand for Australian residential housing.
And at the other end of the market, newspapers report that the overwhelming outlook for commercial property is negative, and the vendor is looking for the worst-case scenario to skip stake into commercial property, and of course, at the same time, the prospective buyers are questioning the very viability of Australian investment.
Interestingly when you look at the residential and apartment outlook, it does negotiators, some of you might say, signaling that there’s a real improvement in the property sector.
Look at the Reserve Bank’s mouth, and the Governor can be easily seen as being positive or, in fact, negative, and the reason for that is with the stability of the financial system comes stability of the banking system, and if there are problems arise those are paramount and will have a very negative impact on the banking system.
And what’s in it for the Aussie? Well, other than the certainty that the Governor is not going to be raking over more coj exclusions or further restrictions on mortgages, and real estate prices generally, other information released in the ago stated that showed that many banks, in fact, do want to advance many loans, and it looks like it’s going to be an ongoing challenge for some banks, some years down the track.
There were some banks that look very healthy (and I’m not talking about the big international names here, but the smaller not-for- alas- uniformly respected banks) bringing in over $7 billion in loans at a time when the bank regulators are feeling the heat.
The flow of loans to investors was up 14 percent, another good sign.
What’s wrong and what’s right?
House Prices 'To Hit Hard'
