Antipodean Housing Deep Dive
Australian housing prices keep rising
Each month we take a graphical deep dive into the Antipodean housing markets.
Housing price growth remains solid overall in Australia, though that masks significant differences between capital cities.
The deliberate strategy of the RBA to not tighten monetary policy as aggressively as many other central banks has been one factor supporting relatively strong housing price growth in Australia. We expect price growth to moderate over the coming year, particularly if interest rates rise further as we anticipate.
In contrast, housing prices in New Zealand, where monetary policy has been tightened by more than in Australia, have broadly flat-lined. The effects of higher interest rates have also been more acutely felt in New Zealand’s residential construction activity, with leading indicators pointing to further sharp declines in home building.
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