Australian home prices grow fastest in 32 years

According to real estate researcher Corelogic, Australian home value grew at the fastest rate in March in 32 years as buyers turned from rural to capital.

The· Latest data The national growth rate of home prices reached 2.8% last month, the highest since October 1988 (3.2%). The numbers include both single-family homes and apartments.

Growth is now led by the metropolitan area and began to outpace the rapid growth seen in rural areas last year. This is because Sydney recorded the highest growth rate in the capital, 3.7% in March and 6.7% for the entire quarter.

“It was a trend reversal and it happened very quickly,” said Tim Lawless, Research Director at CoreLogic. Told Australian Financial Review (AFR).

“I think this is a testament to the fact that the capital is booming as workers return to work, demand begins to recover as they approach the city center, and the capital is beginning to surpass rural areas again,” he said. ..

Record low interest rates are expected to boost housing market growth and remain at current levels until 2024.

Reserve Bank of Australia (RBA) Governor Philip Lowe said he was aware of the impact of low interest rates on the housing market, but said it was being maintained to drive growth and support the recovery of the economy as a whole. ..

“I would like to reiterate that the RBA does not cover home prices and it makes no sense to do so.” Rowe said.. “There are many other tools besides high interest rates to address these concerns.”

Epoch Times Photo
On Wednesday, October 28, 2020, you will see a sign for sale outside the Sydney unit block. (AAP Image / Dan Himbrechts)

Interest rates are a major factor in current record growth levels, but Laures believes that the biggest factor is the current strong demand for buyers above supply rates, which buyers are afraid to miss. ..

“The ratio of sales to new listings is tracked at around 1.1, which means that 1.1 homes are sold for every new listing added to the market. Such a rapid absorption rate , Keeping the overall inventory level low, “he said. “At this point, the fear of overlooking is very obvious. This is one of the biggest factors added to this rapid capital gain.”

Experts expect many to intervene with the Australian Prudential Regulation Authority (APRA), the industry’s regulator, to impose lending restrictions, and the current abnormal growth levels are unlikely to continue. I think.

However, APRA Chairman Wayne Byers said his responsibility was to maintain financial stability and monitor the deterioration of lending standards, not to regulate housing market prices.

“There is no obligation to target home price levels or act to improve the affordability of homes,” Bryce said. In a speech At the 2021 AFR Bank Summit on Tuesday. “For us, home prices are a risk factor, not a goal.”

Bryce said the current market dynamics will allow households to bear more debt, and banks will respond through greater risk-taking.

“It could be in the form of looser lending standards, relaxed portfolio restrictions, or simply not adapting to market trends,” he said. “At the aggregation level, which is an unclear scenario, we’re digging deeper, as expected, because aggregation can hide a lot.”

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