Each month we take a graphical deep dive into the Antipodean housing markets.
There are several common themes across the Australian and New Zealand housing markets.
Housing prices are rising moderately in both Australia and New Zealand. Housing price growth across Australia’s capital cities is diverging, with Sydney and Melbourne at the softer end amid a pick-up in listings of homes for sale.
Real dwelling prices and housing price-to-income ratios remain below previous peaks, though have been rising in Australia.
Mortgage repayment affordability remains very stretched amid relatively high interest rates but accumulated savings since 2020 have (temporarily) assisted deposit affordability.
Leading indicators of residential construction have weakened sharply, though builders are still working through backlogs of work, particularly in Australia.
New housing demand will remain depressed until interest rates start to decline.
Home rental markets are tight and rents on newly leased properties are rising quickly, most notably in Australia.
This month we have made the in-depth chartpack available for all subscribers.