Antipodean Housing Deep Dive

Housing price divergence across countries

Each month we take a graphical deep dive into the Antipodean housing markets, with a detailed chart pack behind the paywall.

Housing price growth remained solid in Australia in May but has been softer in New Zealand in recent months amid broader economic recession.

In Australia, Sydney and (particularly) Melbourne continue to have the softest dwelling price growth amid a pick-up in listings of homes for sale. In contrast, housing price growth in Adelaide, Brisbane and Perth remained strong at 1.4-2.0% m/m over May.

Mortgage repayment affordability remains very stretched because of higher mortgage interest rates and despite quite strong nominal household income growth. Nonetheless, significant accumulated savings since 2020 and intergenerational transfers appear to be assisting with housing deposit affordability.

Residential construction is set to weaken in both Australia, but particularly, New Zealand based on trends in building approvals.

While dwelling investment is falling in Australia, the backlog of work remains very high and will provide some support to the level of building activity.