Australia's home values increase, Sydney and Melbourne still out-performing.
/Republished from Mortgage Business
Cameron Kusher, senior research analyst for CoreLogic, discusses home values and the construction settlement risk report, why Sydney and Melbourne are still out-performing other capital cities and why he believes the RBA is reluctant to make another rate cut.
With values on the rise, housing in both Sydney and Melbourne is becoming increasingly unattainable for first home buyers as well as many others living in in these cities. Both of these cities have seen an influx in high density developments. According to CoreLogic's settlement risk report, within the next 24 months Brisbane's unit stock is expected to rise by 25%, whilst Sydney and Melbourne's will rise by around 15%.
Interestingly, Kusher speculates that with the sharp increase of these high density developments, there may be a return to the older style of apartment living. He believes there may be an initial rush by tenants to these new high density developments as they offer more amenities for a similar rent to older style units, however long term we may see a return to the older style of apartment living with fewer amenities but more room and fewer neighbours.
Cameron Kusher is Head of Research at CoreLogic, specialising in primary and secondary data analysis, property market commentary and consultancy.
