In this month’s edition, the real estate slowdown across the country continues, with Domain Group data showing national property prices slumping 1.2% in the 3 months to March. Over the year however, prices were up 6.3% on CoreLogic data, with Tasmania taking out top spot for six of the 10 most sought-after suburbs in the country.
Meanwhile, AMP Capital chief economist Shane Oliver’s analysis of Australian Bureau of Statistics figures shows a significant slowdown in investor activity and apartment developments, indicating tighter lending standards are starting to bite. The Reserve Bank has warned off further tightening, particularly on interest only loans for households, saying borrowers would face paying thousands of dollars a year extra and could be pushed into mortgage stress.
Inclusionary zoning had been a major topic of the month, with the Australian Housing and Urban Research Institute describing the lack of state government mandated minimums for affordable housing developments as “extraordinary”.
Speaking of development, there’s a new acronym in town – PHIMBY. This latest import from Los Angeles is a play on the Not In My Backyard (NIMBY) population and takes them to a new level, instead arguing for public housing rather than private development.
Download and read the full Market Essentials – May 2018 Report.