Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Cooling property ‘good news for APRA’

aus hotspots aus hotspots
James Mitchell 4 minute read

A leading economist has explained how a slowdown in the Sydney and Melbourne property markets will shape the decisions of APRA and the RBA.

In Australia, home prices softened further in December as the Sydney and Melbourne property boom continues to deflate.

“Tighter lending standards, rising levels of unit supply, slower Chinese demand and reduced investor enthusiasm for property are all impacting and are likely to lead to further declines in Sydney and Melbourne property prices this year of around 5 per cent — maybe a bit more in Sydney and a bit less in Melbourne,” AMP Capital chief economist Shane Oliver said.

“The cooling in the Sydney and Melbourne markets is good news for APRA and the RBA and helps provide the necessary flexibility to leave interest rates low until the broad economy is ready for a hike (which we don’t expect to be the case until late this year).

Advertisement
Advertisement

“It also provides a bit more room for first home buyers. However, other cities are running to their own cycles, with Hobart likely to continue strengthening, Perth and Darwin close to the bottom and moderate growth in Adelaide, Brisbane and Canberra.”

Following the release of the latest CoreLogic Hedonic Home Value Index, which revealed that national home values dropped by 0.3 per cent in December, CoreLogic head of research Tim Lawless predicted that the slowdown trend will continue throughout 2018.

“In 2018, the housing market performance is likely to be significantly different relative to previous years,” the head researcher said.

“We’re likely to see lower to negative growth rates across previously strong markets, more cautious buyers and ongoing regulator vigilance of credit standards and investor activity.”

[Related: Industry predicts what will happen in 2018]

PROMOTED CONTENT


Cooling property ‘good news for APRA’
aus hotspots
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

aus hotspots
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

 

more from the adviser
Stephen Moore headshot

Breaking News

Brokers will dictate future of Choice, FAST, PLAN: White

After its management restructure, Loan Market Group will continue...

Peter Lock Kerry Betros Heritage

Breaking News

Heritage leaders address merger proposal concerns

The chairman and chief executive of Heritage Bank have addressed ...

uptick graph

Breaking News

Wisr reports 113% loan book growth

The non-bank lender originated a record $132 million over the las...