Rising rents and lower vacancy rates encouraging property investment: RBA charts
The housing market is becoming more attractive to property investors, says the RBA in its August monetary policy statement.
The central bank includes this chart (below) showing that national residential vacancy rates have fallen below 2% while rents are trending up above 2%.
“Falls in mortgage interest rates and higher rental yields have increased the attractiveness of new housing investment, although falls in dwelling prices appear to have been weighing on demand for new housing,” notes the RBA.
The RBA also notes the recent improvements in dwelling prices in Sydney and Melbourne in this chart (below):
But it also says that changes to state government housing initiatives are likely to have a “mixed effect on national demand for new housing in coming quarters” due to initiatives such as the first-home bonus scheme in Victoria having recently expired and other new policies taking effect, including the first-home owner grant (new homes) scheme in New South Wales, which will increase the allowance to first-home buyers from $7,000 to $15,000, but only for new homes.
It includes another chart showing how the different data providers it follows (ABS, RP-Data-Rismark and Australian Property Monitors) have reported on recent changes in the housing market.
While the results are divergent, the chart shows that all three providers recorded better results in the three months to June than in the three months to March.
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