This Month in Review
Despite the continued investment interest, financial services company UBS is warning half a trillion dollars of “liar loans” are propping up the Australian banking system. They warn rising interest rates will cause a major shock to the economy.
But this hasn’t stopped strong price growth for the major capital cities, with official ABS data showing Melbourne and Sydney tied for annual price growth of 13.8%, followed by Hobart with 12.4% growth.
At the same time, there has been a predicted slump for apartment building across the country. BIS Shrapnel anticipates the number of cranes in the sky will be halved in 2018 with a record decline in high-density development.
This won’t do any favours for those hoping prices will slump, with the REIA/Adelaide Bank Housing Affordability Report recording home owners across the county spending 31.4% of their income on servicing their mortgage.
And more home owners might soon turn to renting out their spare room to ease the mortgage pressure, with Census data showing 80% of households have at least one bedroom empty, with 8 million spare rooms across the country.
Download and read the full Market Essentials – October 2017 Report