Each month we take a graphical deep dive into the Antipodean housing markets.
The Australian housing market is gathering momentum amid lower interest rates. Ramped-up government incentives for first home buyers will only add fuel to the fire, at least temporarily.
Monthly dwelling price growth strengthened again over September, with prices rising across all capital cities and broad regional areas. Price growth in Melbourne remained a laggard.
The pick-up in investor housing credit growth - the fastest since 2015 - suggests that investors anticipate a period of strong housing price growth ahead. Google search activity related to investment property buying has skyrocketed.
Our view is that there remains significant excess demand for housing in Australia as clearly indicated by very low, and falling, residential rental vacancy rates across all capital cities.
