22 Jul Seven key charts on the state of the Australian property market
Key Points
- The Australian housing market remains far more complicated than many portray it to be.
- The Australian housing is cycle is turning up again; falling interest rates are the key driver; along with a chronic undersupply of homes of 200,000-300,000 dwellings; this partly reflects a surge in building times; poor affordability is a key constraint though; but it varies significantly between cities; and finally, mortgage arrears remain low.
- Average prices are expected to rise 5-6% this year boosted by falling rates but constrained by poor affordability.
