Alexandra Heath, The RBA’s Head of Economic Analysis presents her report to the Urban Development Institute of Australia.
In her presentation earlier today, Alex highlighted Australia’s connection with property and the reason they keep such a close eye on the property market as a whole.
“….housing accounts for around 55 per cent of total household assets…..”
Australia, even by the RBA’s own admission is not a single market with widely varying outcomes for property owners influenced by not just the State they are in but also the attributes of the properties and the city or town they are in.
While pricing through this winter is somewhat flat, Melbourne when compared to the rest of Australia, including Sydney, does have a much more stable growth pattern for dwelling investment;
Additionally, the supply pipeline for Melbourne has been comfortably linear without extreme additions of inventory as has happened in Sydney and Brisbane.
Basic economics 101 always comes back to supply and demand principles and when looking across Australia, Victoria’s population growth as well and truly keeping up pace with dwelling investment when compared to our cousins over the border, and, while “lending standards can also influence how much households are willing and able to spend on housing.”, 100 new families generally need 100 new properties to live in, as either a rental or to purchase.
For the full presentation, click here.