Market Snapshot: Sydney, Melbourne, Hobart Up – Others Down

Facebook Twitter LinkedIn Mail Us

The two largest east coast capitals continued to dominate, with Sydney posting house price growth of 6.8 per cent during the quarter and 11.3 per cent for the year.
Melbourne home values rose by 3.5 per cent during the three months to the end of June and 11.5 per cent year-on-year.
But in the wake of a bout of finger-wagging by the banking regulator in late 2015, growth in lending to investors – the component closely watched by the RBA – has slowed.
At $552 billion in May, it was up by six per cent from a year earlier, barely half the 11 per cent growth rate over the year before that.
The line in the sand drawn by the Australian Prudential Regulation Authority in December 2014, amid fear of an investor-driven housing price bubble, was 10 per cent annual growth in investor housing loans.
The current growth rate is well below that.
But the slowdown in lending to investors has been neatly offset by a pickup in lending to people intending to live in the home they’re buying.
Debt owed by owner-occupiers, now $1.012 trillion, is up by seven per cent from a year ago, ramping up the previous year’s growth rate of five per cent.


Jenna Ford

Jenna Ford - Chan & Naylor


Leave a Reply

Your email address will not be published. Required fields are marked *

Join our mailing list today!

Keep up to date with our latest news & updates!