QMI: June 2022

“Higher interest rates continue to drive the immediate and short-term outlook for Australia’s greenfield markets.

To date, higher interest rates have mostly affected enquiries and sales volumes with residential land prices still generally edging higher in the June quarter.

The next few months should see a continuation of recent trends with the Reserve Bank of Australia (RBA) expected to increase interest rates further as the central bank tries to slow inflation.

While significant attention will be given to the impact of interest rates it is important to also keep in mind the broader range of factors which will continue to drive market activity in 2022 and beyond.

These factors include the near record lows in unemployment, broader residential property market trends (including especially the retreat from recent highs), the return of overseas and interstate migrants (and the resumption of steady population growth), inflation, construction cost / supply chain challenges and growing housing shortages.”

‍

Julian Coppini

Chief Executive Officer - Project Marketing