According to National Australia Bank Quarterly Australian Property Survey released April 11, 2012, the brightest among inner cities is New South Wales and Western Australia. Demand for all types of existing property improved slightly with prospects capital growth continues to be stronger in the sub-500,000 price range. NAB survey shows that market forecast to perform more strongly in 2013 and Western Australia is forecast to be the strongest market with the house price growth of 3.2% while Victoria is expected the weakest market with growth of 0.3%. It shows that there is always a moved back into positive outlook in which we are still in the process of coping last year’s disaster and all of these were supported by an improvement in overall market.


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The National Australia bank (NAB) Residential Property Index released yesterday showed that Residential Property rose to +5 points in March. The December quarter has turned slightly positive as the pace of house price decline moderates and rental growth accelerates. National house price are still falling but the pace of decline slowed. House prices to bottom this year because rents continue growing but still WA is the strongest state. In this survey, there was a notable increase in first home buyers activity in the new property market but investors and overseas buyer were also more prominent. Because of these factors, overall demand for property improved slightly and expected to strengthen over the next 12 months.

 

Residential Property Survey _March 2012_ (1).pdf (194.08 kb)


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According to a Nationwide Poll of Mortgage Brokers, “First time buyers are expected to be the major players in the property market this year.” 36% of respondents, out of 252 market poll expected first home buyers dominate the housing market in 2012.

According to Loan Market Chief Operating Officer Dean Rushton, “Our brokers are divided on which consumer group will dominate 2012, but the majority thinks first home buyers will be the most active.” Interest rate cuts last Fourth quarter of 2011 helped home buyers to emerge from their hibernation.


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According to figures from RP Data and Rismark International, “Home prices in Australia’s eight capital cities rose 0.2% in March from February, led by increases of 1.4% in Perth and 0.8% in Brisbane.” Last March 31, based on the RP Data-Rismark home value index, the nation’s eight capital cities were unchanged in prices in the first quarter. Brisbane strengthen during the quarter while Hobart was the best performer and Adelaide was the worst with prices dropping 1.5%.


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The Reserve Bank of Australia has kept official Interest Rates on hold at 4.25%, where it has been since December. The pace of economic growth has been slower and output growth is lower compared to estimated growth.

According to RBA Governor Glenn Stevens, “If underlying inflation remained around its current level of 2.5%, the board would have room to cut rates.” The RBA cut the cash rate by 25 basis points in November to December but still arguing conditions were improving. If the inflation print will see a low enough, the RBA may cut Interest rate and Australian Bureau of Statistics will release consumer index (CPI) inflation data before RBA’s next board meeting.


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Perth’s Property Market was identified as the standout in terms of home value growth during the month of March. Perth house values saw a lift of 1.4% in March and median dwelling values fell 0.7% during the first three months. Month of March was the strongest in Perth, Darwin and Brisbane because of the resource-rich states.

According to RP Data Senior Research Analyst Cameron Kusher, “Confusion was due to a change to methodology used in hedonic index, converting from monthly to more accurate daily measurement, which affected the last two months indices.” The hedonic pricing method is used to estimate economic values for environmental services that directly affect market price. The basic premise in this method is that the price that related to its characteristics or the services it provides. Anyhow, based on the data last December quarter data from REIWA, Perth’s median house price is $465,000 while compared on the Australian Property Monitor’s December quarter, Perth’s median house price is $ 521,973.These data remained confusing because of the different figures given by the two known sectors. Which is which of the two sectors published accurate figures?


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We all know that Reserve Bank of Australia (RBA) decided to leave the cash rate on at 4.25%. But among the big four banks, National Australian Bank (NAB) has the lowest standard variable rate at 7.22%. Westpac currently offers 7.36% and Commonwealth is 7.31%. Among these Big Four Banks, only ANZ raised its variable interest rates for retail and loans by 7.36%.

According to ANZ Australia Chief Executive Phillip Chronican, “The decision to lift rates was made because of intense pressure on retail and business banking margins.” The rate rise will add $6.50 per fortnight to the average home loan of $280,000. Because of the rate rise, 85% of ANZ customers are already ahead on their repayments and they will not need to pay more.


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