10 Jul 2014
Australian housing lowest since mid 2013 - NAB
FXStreet (Guatemala) - Alan Oster , Group Chief Economist at National Australia Bank noted that housing market sentiment fell as house price growth slows and rental pressures continue to weaken.
Key Quotes:
“Local investors step up and foreign buyers less prevalent”.
“The NAB Residential Property Index -17 to 19 points in Q2 - its lowest print since mid-2013”.
“NAB Group Chief Economist Alan Oster said: “sentiment was down in all states, especially WA, with Victoria overtaking NSW as the best state”.
“The outlook for house prices was scaled back in all states, while rental pressures weakened across the country”.
“Mr Oster also noted that: “local investors were much more active in the new housing market in Q2 accounting for nearly 1 in 3 of all new property sales”.
“In contrast, foreign buyers were less prevalent in both new and established property markets”.
“The share of foreign buyers in established property Australia-wide fell from 13.9% in Q1 to 10.2% in Q2. In the new property market, it fell to 7.2% from a high of 9.5% in Q1”, said Mr Oster”.
“Victoria however, bucked this trend, with foreign buyers reaching a new high of 17% or around 1 in 6 new properties”.
“Housing affordability replaced credit availability as the key concern for buyers of new property, but employment security is still the biggest impediment in the established housing market in most states”.
“NAB’s own analysis of the market suggests that average capital city house prices should cool further over the next 2 years towards more sustainable levels”.
“We are forecasting average house price growth of 4.6% through the year to June 2015 and 3.2% in the year to June 2016”, said Mr Oster”.
“Brisbane, Sydney and Perth are expected to lead the market in the next year, with Melbourne and Adelaide lagging”.
Key Quotes:
“Local investors step up and foreign buyers less prevalent”.
“The NAB Residential Property Index -17 to 19 points in Q2 - its lowest print since mid-2013”.
“NAB Group Chief Economist Alan Oster said: “sentiment was down in all states, especially WA, with Victoria overtaking NSW as the best state”.
“The outlook for house prices was scaled back in all states, while rental pressures weakened across the country”.
“Mr Oster also noted that: “local investors were much more active in the new housing market in Q2 accounting for nearly 1 in 3 of all new property sales”.
“In contrast, foreign buyers were less prevalent in both new and established property markets”.
“The share of foreign buyers in established property Australia-wide fell from 13.9% in Q1 to 10.2% in Q2. In the new property market, it fell to 7.2% from a high of 9.5% in Q1”, said Mr Oster”.
“Victoria however, bucked this trend, with foreign buyers reaching a new high of 17% or around 1 in 6 new properties”.
“Housing affordability replaced credit availability as the key concern for buyers of new property, but employment security is still the biggest impediment in the established housing market in most states”.
“NAB’s own analysis of the market suggests that average capital city house prices should cool further over the next 2 years towards more sustainable levels”.
“We are forecasting average house price growth of 4.6% through the year to June 2015 and 3.2% in the year to June 2016”, said Mr Oster”.
“Brisbane, Sydney and Perth are expected to lead the market in the next year, with Melbourne and Adelaide lagging”.