Australian housing: the latest data and where else investors can look for stable income
In the below two short videos, Dr Shane Oliver shares insight into what the latest Australian housing data suggests, and where else investors can look for stable income.
What does the latest data suggest about Australian housing?
Australian housing markets are varied and it depends on where investors look. There’s a tendency to focus on the overheated Sydney and Melbourne markets, but over the past year, values for homes in Perth have fallen by 1.7% whilst Darwin tumbled 7.0%. Elsewhere, values went up 2.4% in Adelaide, 2.0% in Brisbane, 6.8% in Hobart and 9.6% in Canberra. Despite the mixed data, household debt has been rising faster than household income, partly due to the strength of the Sydney and Melbourne markets. Consternation amongst the RBA and bank regulators is starting to show with a tightening in lending standards, a crackdown on interest-only borrowing and out of cycle rate rises.
Australia has some way to go until the housing market evens out and interest rates are hiked by the RBA. Either way, first time buyers in Sydney and Melbourne will be pleased to hear the housing market is cooling off – but it has a long way to go until housing becomes affordable again.
Aside from residential property, where else can investors look for stable income?