Australian house prices are not expected to plummet below pre-COVID levels with experts saying the local property market can look to the “soft landing” being experienced in New Zealand as a guide
New Zealand, which is six months in their downturn, are on track for a soft landing and a good indicator of where Australian could land..
There have been four more rises since, with the expectation of another 0.50 percentage point increase when the Reserve Bank of New Zealand meets on Wednesday. That will take New Zealand’s cash rate to 2.5 per cent. The bank’s chief economist Sharon Zollner said while there were risks of larger price falls, so far, it was on track for a “soft landing”.
“Housing affordability is not getting any better, as bank serviceability tests rates go up, the amount you can borrow is shrinking faster than house prices are going down.”Credit:PRD chief economist Dr Diaswati Mardiasmo said Australia was on a similar path as New Zealand started its rate rises sooner.
Barrenjoey capital chief economist Jo Masters said while it was worth watching New Zealand closely, there are clear differences in Australia that could potentially see households at home better off. “The leverage in Auckland is much greater than either Sydney or Melbourne. Here we talk about the proportion of debt over six times one’s income. At the moment, in Australia it’s a little under a quarter of new mortgages, but it’s running over 50 per cent in New Zealand,” Masters said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Zealand 12-23 Ireland: second rugby union Test – as it happenedAndrew Porter was the unlikely hero with two tries as Ireland beat the All Blacks in New Zealand for the first time in their history
Read more »
Ireland scores historic victory over All Blacks in New ZealandThe Irish level the three-Test series at 1-1, after achieving their first win over the All Blacks on New Zealand soil.
Read more »
Ireland take historic victory over All Blacks in New ZealandSix years after their first victory over New Zealand in more than a century of trying, Ireland have now won four of the last seven encounters with the three-times world champions.
Read more »
‘I was shocked’: Australian sets new national record and long jump world markAustralian long jumper Brooke Buschkuehl has set a new national record with the longest jump in the world this year only days out from the World Championships.
Read more »
Ampol focuses on its role in the Australian journey in new ad pushThe campaign will highlight what the company stands for, then celebrate its fuel credentials and later add messaging around its future energy initiatives such as EV charging.
Read more »
New blue blood at the Australian ClubMalcolm Turnbull is proposing a new member while Michael Cannon-Brookes also joins the fold.
Read more »