Residential market bouncing back according to CBRE analysts

Australia’s residential housing market is forecast for a positive future after a lengthy and miserable period of downturn, according to CBRE’s Residential Property Market Report.

The research, published in collaboration with The Urban Developer, suggests that after the market reached its lowest point in 12 years due to decelerating prices, it’s back on the up.

GALLERY  

Buyer confidence, and increased access to finance with looser lending conditions are expected to set the market up for a rebound in the final months of the year.

In 2018, prudential regulator APRA announced it would reverse its temporary supervisory benchmark on mortgage lending, which put a 30 per cent cap on interest-only lending.

APRA then announced a reduction in the minimum assessment mortgage stress levels from 7 per cent to 6 per cent and both of these decisions invited more buyers back into the market.

“With two interest rate cuts and APRA calming the serviceability criteria, we’ve seen a huge influx in sales across all of our portfolio projects, and we’re starting to see buyer confidence return,” CBRE Victoria managing director Andrew Leoncelli said.

Another significant factor has been the re-election of the federal Liberal Party, which Mr Leoncelli says was a boost for the industry and general confidence in the sector.

“The shock win that the Liberal Party had instantly gave us a significant bounce in the volume of buyer activity and enquiry,” Leoncelli said.

“The first six weeks after [the election] we had a 105 per cent increase in enquiry and we had a 250 per cent increase in buyer activity.”

Similarly, the Morrison government’s proposed First Home Loan Deposit Scheme is anticipated to increase buyer enthusiasm.

If approved by 2020 it will allow people earning up to $125,000 annually, or couples with a joint income of up to $200,000 to purchase a first home with a 5 per cent deposit.

Australia’s population continues to grow at a fast pace which is partially contributing to an increase of owner-occupiers.

The national proportion of owner-occupier loans to first home buyers is at its highest level in over five years, having increased by 18 per cent last year.

Image courtesy of The Urban Developer






Get our enews

Design and development news that comes to you






                 
The Art Space Gallery & Restaurant

After one of the largest floods of the year in central Vietnam, ShapeUS Studio was approached to help ...

Sky Green’s the Limit

Developer Golden Jade commissioned WOHA to design a green and sustainable mixed-use development in the heart of Taichung, ...

Luxury bathhouse opens in former New York 1930s factory

A team of American entrepreneurs have converted a former 1930s factory building into a bathhouse, creating a zone ...

‘Aquatecture’ panels recycle water for highrise buildings

South African designer Shaakira Jassat has created “rain catching” panels that allow highrise buildings to save water that ...

'Comfort Town' residential village in Ukraine wins global award for use of colour

The bright colours of Comfort Town residential complex in Kyiv Ukraine turn an industrial area into a warm ...

  MORE  

Stay connected to the SPEC

Join our reader network by signing up to our weekly newsletter and receive design and development news straight to your inbox










© 2018 Universal Media Co. All Rights Reserved. Privacy Policy. Terms of Service. The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Universal Media Co.