Investors ease back into property

Credit growth is steady

Credit growth was steady at 0.5 per cent in March, and 6½ per cent over the year.

Housing credit was also steady, at 0.45 per cent for a third month.

Investor credit growth is now on a par with growth in owner-occupier credit, as investors move into cities such as Melbourne, Darwin, and some regional locations.

Overall, the impulse in housing credit has been easing for the past six months, reflected in steadier housing price growth across the capital cities. 

That said, with an interest rate cut in May now fully priced in and further cuts likely, credit growth is likely to show more life as the year progresses, based on historic trends.

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    1. Download our property buying guide

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Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

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You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

Markets look through bill shock

Electricity prices jump

After two low quarters of headline inflation at 0.2 per cent, the March quarter revealed headline inflation at 0.9 per cent as electricity subsidies were unwound (electricity prices jumped back 16.3 per cent higher over the quarter, largely driven by prices in Brisbane). 

Over the year inflation has moderated, at 2.4 per cent. 

Looking through the noise, the closely watched trimmed mean inflation came it at 0.68 per cent for the March quarter, following on from 0.54 per cent in the preceding quarter.

This was in line with Reserve Bank forecasts, which is what really matters in the end, while the 2-quarter annualised figure for trimmed mean inflation has also dropped to 2.4 per cent. 

Looking ahead, we should get lower fuel prices in the June quarter, while rental price inflation will also continue to fall from here (and new dwelling price inflation has also slowed from above 20 per cent to zero). 

The strongest rental price inflation over the past year was still seen in Perth (8.9 per cent), but the volatility associated with Perth's boom-bust cycles over the past quarter-century means that cumulatively rental price growth has actually been lower than that experienced in other capital cities. 

It's also interesting to note just how similar inflation rates have been around much of the developed world, recently herding together at about 2½ per cent over the year to March.

The wrap

Overall, inflation was a bit higher than expected in the March quarter, but not alarmingly so, and markets are pricing an interest rate cut in May (and four cuts in total over the remainder of 2025).

James Foster took a look at the details here, and showed how - despite high increases in education costs - services price inflation has now eased back.

In other news, the Australian Bureau of Statistics reported that the overseas born population in Australia jumped to 31.5 per cent (or 8.6 million) in FY2024, up from 30.7 per cent in FY2023.

This is the highest share of overseas-born Aussies in over 120 years.

The growth over the past decade has mostly been due to Indian-born residents (comfortably more than doubling from 411,000 to 916,000, and soon to surpass England as the number one overseas country of birth as more of the Ten Pound Poms generation drops off). 

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    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

Fuel prices approach 2-year low

Fuel prices tumble

Unleaded petrol prices hit a 21-week low last week, according to CommSec analysis.

The national average petrol price fell -0.9 per cent to 156.4 cents per litre, while unleaded prices fell -0.7 per cent to 178.1 cents per litre. 

This is well down from the 2022 highs at above $2.12 per litre, but still we should drop below the 2-year lows during the next fuel cycle, given the much steeper drops in the oil price. 

On Wednesday the ABS will release the latest inflation figures, which look set to see the 6-month annualised pace sliding for core inflation towards the bottom half of the target 2 to 3 per cent band. 

Goods prices in the private sector have generally been falling, but punchy government expenditure has pushed the price of education and healthcare services higher. 

Electricity prices could also jump by around 15 per cent this quarter, as energy relief subsidies unwind, which is another disappointing policy result for the government.

Still, the polls are leaning to 3 more years for the government, which suggests that we'll be leaning towards a Big Australia, and big spending on infrastructure and construction.

Luci Ellis of Westpac has seen enough already, and wrote in her markets note this week that a May interest rate cut is a certainty, regardless of the inflation result. 

All of the major bank economists are leaning towards between 3 to 5 interest rate cuts this year. 

---

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

2-Sense: Pete’s property predictions for 2025…and 2026

Property podcast

Just me on the podcast this week, making my predictions for 2025 and 2026.

Tune in here (or click on the image below):

You can also watch the video version here:

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P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

Listener Q&A with Amy and Pete

Property Q&A

I joined Amy to discuss all your latest listener questions on the Australian Property Podcast.

Tune in here (or click on the image below):

You can also watch on YouTube here:

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P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

Housing shortage inevitably to surpass 300,000 dwellings

Housing shortage builds

Shane Oliver of AMP updated his chart of home construction versus underlying demand.

Perhaps not surprisingly, his calculation of the cumulative undersupply has blazed well past 200,000.

With housing construction mired at around decade lows, and immigration-favouring Labor set to win the election - it's only a matter of time before the shortage blows out to beyond 300,000 dwellings.

Oliver noted:

"...underlying demographic demand (driven by strong population growth) continues to run well ahead of new housing supply (constrained by capacity and cost issues, etc.), and is pushing the accumulated housing shortfall back up towards levels last seen prior to the unit building boom last decade”.

The opposition has proposed a cut to immigration levels, but is now trailing badly in all polls.

Since Labor very much favours a Big Australia approach, the housing shortage is set to get much worse over the next three years.

Rental vacancy rates are already about as low as they will ever go, so the next few years will be characterised by increasing household sizes as tenants jostle for rentals, and a wild rush of first homebuyers as the government introduces a 5 per cent deposit scheme from January.

Practically all first homebuyers able to scrape together a deposit will likely endeavour to buy a first home, driving the market from the ground up next year.

More from News here.

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P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

Rents in seasonal lift; household sizes increasing

Rents rise, seasonally

Rents rose +1.7 per cent in the March 2024 quarter to a new high, driven by strong gains in Hobart, Perth, Brisbane, Canberra, and Sydney of the capital cities.

Unit rents (+2.3 per cent) are driving the growth more so than house rents (+1.4 per cent) at the moment. 

Regional rents also rose +2.2 per cent to a new high, and with rents outpacing price growth of late, rental yields have increased over the past three years. 

Although this was a solid seasonal lift, the annual growth in rents has calmed down to +3.8 per cent (well down from +8.3 per cent a year earlier).

Rental vacancy rates also appeared to have steadied at around 1.6 per cent, as the average household size increases, although total rental listings are still more than -20 per cent lower than is normal for this time of year.

Source: CoreLogic

Overall, it seems that - although the housing shortage hasn't gone away - household sizes are increasing as renters 'bunch up' in response the large increase in rents, and this is helping to stabilise the rental market to some degree. 

You can read the full CoreLogic report here.

---

P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

Big Picture podcast with Michael Yardney

Big Picture podcast

I joined Michael Yardney at the Big Picture podcast to discuss the Trump tariffs and all the latest property news.

Tune in here (or click on the image below):

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P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today. 

2-Sense: First homebuyers in election madness

2-Sense podcast

This week on the podcast Chris and I discuss the impact of all the election policies announced for housing, including 5 per cent deposits for first homebuyers.

Tune in here (or click on the image below):

You can also watch the YouTube version here:

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P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today.

This is how to reach escape velocity

Blog post

I wrote a short blog post on the 3 phases of the investment journey here (or click on the image below):

Jobs market gradually cooling in 2025

Jobs data gradually cools

Employment rebounded as expected in March, but only by a bit less than expected at +32,200, following on from a much larger drop in February. 

As such the 3-month average job gains in March had slowed to near zero, at just +2,000 per month.

There were fewer hours worked in March, partly thanks to Cyclone Alfred in northern New South Wales and southern Queensland.

With a small increase in the participation rate, the seasonally unemployment rate rounded up to 4.1 per cent...but only just.

The unemployment rate remains very low in Queensland, at under 4 per cent, but a bit higher in Victoria, at 4.4 per cent.

Other measures of slack were broadly unchanged in March, but remain tighter than they were coming into the pandemic 5 years earlier.

The wrap

Overall, there wasn't too much surprising in these figures, and markets weren't much moved at all.

This news largely pre-dates the tariff turmoil, and there may be some negative impacts on hiring through April and for the rest of the year, but these figures were robust enough for now. 

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CoreLogic/Cotality reported that rents rose +1.7 per cent over the March quarter, but this was partly a seasonal lift, and the annual increase in rents has slowed. 

CoreLogic reported that:

"...vacancy rates tightened to 1.6% in March, down from 2.0% in December and just 10 basis points above the record low seen in March 2024."

The full report you can read here.

---

P.S. Whenever you’re ready…here are 4 ways I can help you:

    1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with well over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with some 3¾ million hits here. 

You can also catch up with me daily on Twitter here, where I'm active daily and have over 14,900 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here.

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - follow our book release on Facebook here and at our Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today.