This article is from the Australian Property Journal archive
THE latest 25 basis point interest rate rise to 4% will have a minimal impact on the residential housing market, according to the Australian Property Institute.
API president Steve Simpson expects first and second homebuyers demand in Victoria will continue unabated.
This view is supported by Ray White, Australia’s largest real estate group, chairman Brian White.
White said the residential housing market should be able to absorb the latest rise in official interest rates.
“There has been evidence that the four rises since October last year have had an impact.
“It would be good if the RBA now stood back and left rates on hold for a few months to create some stability,” he said.
Meanwhile Simpson said home buyers should exercise caution as not all markets/suburbs are experiencing rapid capital growth as indicated by median house price statistics.
On the investment front, Simpson believes prudent investors are still taking a cautious approach to the residential property market with the expectation of further rate rises this calendar year.
“As such, some sectors of the residential investment market consider a possible slowing of the market within 12 months as broader investment opportunities become available with less competition from owner occupiers,” he concluded.
Australian Property Journal
