Breaking News

'Ripple effect' hitting capitals

Reserve Bank Governor Glenn Stevens has predicted a near-term future of interest rate stability however weakening property markets in China do pose a possible future challenge.

Speaking at the monthly Reserve Bank board meeting, Mr Stevens said recent Chinese growth has been in line with policymakers’ objectives, although some data suggested a slowing in recent months.

Mr Stevens said overall, financial conditions remain very accommodative.

“Long-term interest rates and risk spreads remain low … markets still appear to be attaching a low probability to any rise in global interest rates or other adverse event over the period ahead,” Mr Stevens said.

“Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets.

“Dwelling prices have continued to rise over recent months. On present indications, the most prudent course is likely to be a period of stability in interest rates.”

RP Data’s Head of Research, Tim Lawless, said the softer housing market conditions over September may have eased some of the RBA’s concern for the housing market.

In RP Data’s weekly market update, Mr Lawless said growth rates haven’t been accelerating since early this year, however the future rate of growth still needs to be monitored. Mr Lawless added if investor interest isn’t moderated in Sydney and Melbourne then the RBA and APRA may intervene to slow down investment without raising interest rates.

“Investor interest in Sydney and Melbourne has been significant compared with other capital cities and compared with historical rations of owner occupier loans to investor loans,” Mr Lawless said.

“It will be important to monitor the trend rate of growth, particularly across Sydney and Melbourne, where values have risen substantially more than any other city.

“Investor interest in these markets has been significant compared with other capital cities and compared with historical rations of occupier loans to investor loans.”

LJ Hooker Chief Executive Officer Grant Harrod said the housing market remains buoyant with the growth from Sydney and Melbourne casting a ripple effect to the other more affordable capital city markets. The related growth in construction, according to Mr Harrod, is also helping to rebalance the economy but he remains cautious.

“However, price growth and investor demand for housing, especially in Sydney and Melbourne, has seen the RBA raise the prospect of introducing macro-prudential measures to help de-risk the market,” Mr Harrod said.

Cold shoulder for 'Breaking Bad' agent

Real estate agents nationwide are saddened to hear of the arrest of former LJ Hooker Brisbane estate agent Patrick ‘Ryan’ McCann, but fair few have any sympathy for him regarding his arrest.


FRIDAY FUNNIES: Designer duds

The phrase ‘beauty is in the eye of the beholder’ is apt when looking at the grab bag of ‘aesthetically challenged’ houses featured in this week’s Friday Funnies.


Good intentions drive rentals

Gaps in the Sydney property rental and investment market are being filled by high levels of immigration, with real estate agents citing most new Australians are renting with the intention to buy.


Star agent nabbed in drugs raid

High-flying Brisbane real estate agent Patrick ‘Ryan’ McCann has been charged with over 34 drug offences ranging from supply, trafficking and possession, following a two-year police sting operation.


Agents doubt Gonski gloom

ANZ chairman David Gonski has warned of a looming market correction that may deny punters the "wonderful experience" of buying a house in the near future.


Block brothers built a winner: Cooley

A fastidious approach to workmanship, a good builder and choosing high-end fittings are the three factors that helped push The Block’s wining apartment into the $1.91 million territory, earning renovators Simon and Shannon Voss a tidy profit as well according to celebrity auctioneer Damien Cooley.


Executives deny racial profiling

Allegations of cut-throat business practices conducted by agents attempting to lure foreign investment onshore have been shot down by prominent real estate executives.


Latest News