Antipodean Housing Deep Dive

Darkness before the dawn in kiwi housing

Each month we take a graphical deep dive into the Antipodean housing markets.

Housing price growth remains solid overall in Australia but prices have continued to decline in New Zealand. Listing activity appears to be picking up in Sydney and Melbourne, even after adjusting for seasonality.

Leading indicators point to further sharp declines in new housing construction in New Zealand. In Australia, the housing construction cycle has been relatively shallow, in part reflecting capacity and other constraints in the broader construction industry. The pipeline of incomplete dwellings in Australia remains relatively large, but is declining.

Renovations activity in Australia is poised to strengthen in Australia, with building approvals picking up sharply in Q2.

Mortgage rates have recently fallen quite sharply in New Zealand amid lower market interest rates and as the RBNZ has flagged the likelihood of a series of OCR cuts. Lower interest rates should stabilise New Zealand’s established housing market before a pick-up in price growth follows.