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at 10:20 am on April 1, 2021 | 35 comments
Westpac CEO Peter King believes that Australia has a housing supply problem, which he claims is exacerbating price growth and pricing young people out of the market:
“In relation to what’s driving housing prices, it’s from my perspective supply and demand so one of the ratios we look at quite a lot is new listings to sales and it’s still out of whack (more sales than new listings)”…
“I don’t think bank debt is a driver of the housing prices, I think it’s a fundamental supply demand issue”.
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at 12:00 pm on March 2, 2021 | 12 comments
As expected, Australia’s business lobby and wealthy elite are growing more vocal demanding the federal government open Australia’s international border to migrants.
These groups like mass immigration for three main reasons:
It provides a bigger pool of available workers to recruit, thereby increasing competition in the labour market, lowering worker bargaining power, and holding down wage costs;
It expands Australia’s consumer base, providing businesses with more opportunities to sell their goods and services; and
It places upward pressure on land values and property prices, making the owners of capital richer.
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at 12:10 am on February 5, 2021 | 60 comments
As expected, the Housing Industry Association (HIA) has used its pre-Budget submission to lobby for a return to mass immigration.
The lobby group warns that the closure of Australia’s international borders will result in reduced demand for housing, which is in turn likely to see residential construction activity fall sharply in 2022. Master Builders Australia has also highlighted the effect of migration on demand for housing.
From
In a pre-budget submission, the HIA said the disruption to immigration and drop in population growth would “weigh on demand for housing”. “This drop in demand is expected to manifest in a material drop in residential building activity in 2022,” the submission says…
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at 12:10 am on January 28, 2021 | 8 comments
The Australian Bureau of Statistics (ABS) yesterday released consumer price index (CPI) data for the December quarter, which revealed that property rents fell sharply in 2020.
While property rents rose by 0.1% of the quarter:
Over the 2020 calendar year, rents fell by 1.3%:
The next chart plots rental growth across the capital cities:
As you can see, six jurisdictions recorded rental declines in 2020, whereas two recorded positive growth.
In real inflation-adjusted terms, rents across the combined capital cities fell by 0.8% over the December quarter and by 2.2% year-on-year:
In fact, real inflation-adjusted rents were 7.5% below their March 2015 peak, according to the ABS: