Sentiment low
Westpac's consumer sentiment index showed a modest increase in October, but overall consumer confidence remains low in the face of tight lending conditions and a per capita recession.
The time to buy a dwelling index ticked a little higher, and at least is a little higher than a year ago now, though overall consumers remain fearful of interest rate settings.
House price expectations increased further in October, with the index up +62 per cent over the past year.
Source: Westpac
ABC News ran a longform piece over the past weeks showing how desperate Aussies are turning to granny flats due a lack of available accommodation (our local notice board has posts every single day from new arrivals looking for a room to rent).
Normally you'd expect building approvals to respond, but supply remains low and lending setting remain extremely tight - not only with the cash rate target at 4.10 per cent, but with a stress-test lending assessment buffer of 300 basis points in place to reduce financial stability risk.
Not quite sure what the plan is here...tent cities next?
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Asking prices rose in Sydney and Brisbane over the past month, with asking prices for Brisbane houses piercing $1 million for the first time, up from $650,000 before the initial COVID lockdowns.
Asking prices for units in Brisbane have also increased from $370,000 to $540,000 since the onset of the pandemic.
In Sydney, asking prices for units have notched a record high, but are only modestly higher than they were half a decade ago in January 2018 (while construction costs have absolutely skyrocketed over the past 3 years).
We've missed out on a series of auctions and private sales for units in Brisbane over the past month, outbid each and every time.
Population growth in Queensland is running at around +125,000 per annum. but not nearly enough is being delivered to the market in terms of supply.
Asking prices in Melbourne, on the other hand, have been fairly flat over recent times.
Source: SQM Research
