Quantcast
More

    ‘Staff backlash’ over Eton’s ‘aggressively woke’ cultural revolution

    'Staff backlash' over Eton headmaster 'Trendy Hendy's' 'aggressively woke' cultural revolution to overhaul 580-year-old public school - as 1,000 pupils sign petition to reinstate...

    Texts Nebraska woman sent to family of murdered Cari Farver

    Revealed: Messages Nebraska woman sent to family of the 37-year-old love rival she murdered and then posed as to cover up the crime –...

    Marks & Spencer manager goes viral in hilarious TikTok video showing off store’s new ‘scan and shop’

    Aisle be a star! M&S store manager becomes a TikTok with his VERY enthusiastic demonstration of the supermarket's 'scan and shop' service Craig Field, 29,...

    Reserve Bank of Australia governor Philip Lowe reveals why he thinks house prices will rise again

    How Australian house prices are set to rise again despite COVID – as one powerful banker predicts why

    • Reserve Bank of Australia is expecting investors to drive up house prices again
    • Governor Philip Lowe said record-low interest rates would entice investors back
    • Australia’s border closure has affected Sydney and Melbourne real estate values 
    • Coastal regional prices hit record highs as more people could work from home 
    • SQM Research’s Louis Christopher said COVID was catalyst for lifestyle change 

    The Reserve Bank of Australia is expecting house prices to rise despite the weakest population growth since World War I. 

    The house price recovery from the coronavirus recession has already begun with values last month rising in every state capital city except Melbourne, as it emerged from lockdown.

    Smaller capitals and provincial cities by the coast also did well as 21 regions across Australia hit new record highs, CoreLogic data showed. 

    Reserve Bank governor Philip Lowe said record-low interest rates of just 0.1 per cent would spark a housing market recovery.

    The Reserve Bank of Australia is expecting house prices to rise despite the weakest population growth since World War I. House prices in 21 regions of Australia last month hit record highs, including in the Richmond-Tweed region of northern New South Wales (Bangalow house pictured)

    ‘To date, the demand from investors in residential property has been subdued, but it is possible that low interest rates will change this,’ Dr Lowe told the Committee for Economic Development of Australia annual dinner on Monday night.

    The areas where house prices are at a record

    Mid-North Coast of NSW 

    Coffs Harbour, Grafton, northern NSW 

    Richmond-Tweed, NSW far north coast

    New England, northern NSW

    Central West of NSW 

    Murray region of southern NSW 

    South-east Tasmania 

    Launceston and north-east Tasmania

    Hobart

    Gold Coast

    Sunshine Coast 

    Moreton Bay, southern Queensland 

    Brisbane east and north 

    Adelaide central, west, north and Adelaide Hills

    Capital region of southern NSW 

    Canberra 

    Sources: CommSec, CoreLogic 

    Advertisement

    ‘This is one of the many areas that we will be watching carefully in the period ahead.’

    The ability for more professionals to work from home has also seen house prices rise in regional areas by the coast as Sydney and Melbourne prices fell for much of 2020.

    ‘In some states, the markets in our regional towns and cities have been stronger than those in the capital cities,’ Dr Lowe said.

    ‘For example, while prices have fallen in Sydney they have increased in regional New South Wales. 

    ‘Many regional centres have been less affected by the virus and some are experiencing increased demand as people work remotely and look for property outside the big cities.’

    With three of Australia’s big four banks now offering fixed interest rates of less than two per cent, first-home buyers and owner-occupiers have in 2020 been keener on buying property than investors.

    Landlords in inner-city areas, in particular, have also struggled as the virtual end of international student arrivals caused rental vacancy rates to hit double-digit figures. 

    In Melbourne’s city centre, 10.6 per cent of properties were empty in October, SQM Research data showed.

    SQM Research managing director Louis Christopher said rental vacancies remained higher in big cities but were close to zero in many regional areas.

    ‘I believe many have used coronavirus as a catalyst for a longer-term lifestyle change,’ he said.

    The closure of Australia’s border in March to non-citizens and non-residents is expected to cause population growth to shrink to just 0.2 per cent in 2020-21, the weakest increase since wartime 1916.

    The ability for more professionals to work from home has also seen property prices rise in regional areas by the coast as Sydney and Melbourne prices fell for much of 2020. Pictured is the view from a Noosa balcony, as Sunshine Coast values reached a record high in October

    The ability for more professionals to work from home has also seen property prices rise in regional areas by the coast as Sydney and Melbourne prices fell for much of 2020. Pictured is the view from a Noosa balcony, as Sunshine Coast values reached a record high in October

    Before the pandemic, Australia’s population growth pace of 1.5 per cent was the fastest in the developed world.

    Dr Lowe said high population growth, before the border closures, had made housing unaffordable in major capital cities, with Sydney’s median house price a shade under $1million.

    ‘The effects of fast population growth have also been felt in our housing market and in pressure on some of our infrastructure,’ he said.

    ‘So the effects have been widespread.’

    Reserve Bank governor Philip Lowe said record-low interest rates of just 0.1 per cent would spark a housing market recovery as investors returned to property

    Reserve Bank governor Philip Lowe said record-low interest rates of just 0.1 per cent would spark a housing market recovery as investors returned to property

    Without the usual annual net immigration pace of 200,000 new arrivals, the Reserve Bank is expecting annual wages growth of less than two per cent for the next two years – continuing a long streak of below-average pay increases dating back to 2013.

    Inflation, now at 0.7 per cent, was expected rise to just one per cent in 2021, a level well below the RBA’s two to three per cent target band. 

    Announcing the latest rate cut on Melbourne Cup day, Dr Lowe said interest rates were likely to stay at record-low levels for three years.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest Posts

    AHEAD OF THE GAME: Manchester United keen to re-visit plans to hire a director of football

    AHEAD OF THE GAME: Manchester United keen to re-visit plans to hire a director of football while the BBC are eager to commission follow-up...

    Radio host Bianca Dye discusses her plans to fall pregnant before turning 50

    Radio host Bianca Dye reveals her plans to fall pregnant before turning 50 - despite receiving the heartbreaking news that she carries the miscarriage...

    Johns Hopkins professor slams the FDA for holding up approval of COVID vaccine with red tape

    Operation Turtle Speed! Johns Hopkins professor slams the FDA for holding up approval of COVID vaccine with red tape ‘as more than 2,000 Americans...

    The Virus Is Devastating the U.S., and Leaving an Uneven Toll

    #masthead-section-label, #masthead-bar-one { display: none } The Coronavirus Outbreak liveLatest Updates Maps and Cases C.D.C. Shortens Quarantine Periods Vaccine Tracker FAQ Advertisement Continue reading the main story Supported by Continue reading the main story The...