News & Tips

Good afternoon,

The week was quiet on economic data, with some movement in the interest rate outlook standing out as the most significant development.

Highlights of the week:

• A slight fade in auction clearance rates as reported by Cotality, with a slight dip to a still strong 75%.  The fourth straight week where the combined capitals preliminary auction clearance rate held at 75% or higher.  For Melbourne, there have now been 19 consecutive weeks with the clearance rate at 70% or higher.

• The ABS reported that the total value of Australia’s residential dwellings reached $11.7 trillion in the June quarter, with the number of dwellings estimated at 11.3 million. This cements housing’s position as the country’s largest store of household wealth.

• Economic news continues to point to a hold by the RBA on September 30th, with markets now placing the chance of a cut at less than 15%.  Markets still expect the next cut on Melbourne Cup Day (November 4th).

• Cotality reported that national rents were up 4.1% over the year to August, with capital city growth regaining momentum. Gross yields held steady at 3.7% but remain squeezed by higher dwelling values.

Have a great weekend!

Chief Economist

Matt Bell