Credit growth 8pc over the year to April

Housing impulse beyond peak

Credit growth in the Aussie economy was 0.66 per cent in April, down slightly from 0.73 per cent in March, but still up 8 per cent over the year, according to the RBA's Financial Aggregates. 

The Reserve Bank's Sarah Hunter noted today that it's expected that the economy will now go into something of a downturn (this appears highly likely given the Budget tax grab combined with several interest rate hikes).

Housing credit growth was steady in April at 0.64 per cent, to be 7½ per cent higher over the year.

It was another strong month for investor credit growth at 0.93 per cent, leading to double-digit growth for investment over the year to April.

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The housing credit impulse was thus steady in April, but was also below the peak of December 2025.

The wrap

Overall, housing price growth will clearly slow over the year ahead as interest rate hikes and tax changes bite.

You can clearly see the appetite for property investment in these charts given high population growth, low unemployment, and record low rental vacancy rates.

However, the changes to capital gains tax and especially negative gearing legislation is leading to a seismic shift in approach for investors, who are tilting towards new builds, higher-yielding residential or commercial properties, and self-managed super fund property investment...or simply focussing more on building equity through their principal place of residence, which remains capital gains tax free.

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

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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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

GDP per capita slumps

Economy stalls

GDP growth slowed to just 0.3 per cent seasonally adjusted in the March 2026 quarter, and 2½ per cent over the year.

There was some Cyclone disruption to coal and ore exports, which didn't help the slightly glum overall picture. 

The economy has added 1 million additional people over the past two years, though, and after accounting for population growth GDP per capita was negative, and remains below previous highs.

Indeed, per capita GDP was actually higher 15 quarters earlier, in June 2022. 

The household saving ratio is now pulling back again as mortgage repayments rise in 2026. 

For now at least, Australia's terms of trade remain way above their long-run averages, though there is obviously some downside risk here. 

Domestic demand appeared solid enough in the March quarter (though the jump was partly due to the ending of electricity rebates leading to more spending in this area).

However, the economy is likely to be in something of a rut through this calendar year as households will need to absorb the three recent interest rate hikes already delivered, and perhaps more yet besides. 

As previously noted last week, the one bright spot related to data centres in New South Wales and Victoria, with machinery and equipment investment seeing the biggest surge in 30 years.

The wrap

Overall, this was a sluggish result, which might've even been in outright recession territory were it not for the timely boost in investment in data centres, processors, servers, and IT equipment in Sydney and Melbourne.

Looking ahead the series of interest rate hikes will likely weigh further on consumption and housing construction.

James Foster ran through the figures in more detail here. 

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Asking rents rose 1.2 per cent in the capital cities over the past month, to be 7.6 per cent higher over the year.

Unit asking rents rose 0.4 per cent over the month, to be 6.6 per cent higher over the year, according to SQM Research's figures:

Source: SQM Research

Just anecdotally, we've had a couple of Brisbane clients rent out properties at the first busy open homes at rents up to $100/week above where we'd appraised the market to be...though I reckon this dynamic may apply to well-located family homes, but probably less so for generic units. 

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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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

ausbiz: Is the housing boom over?

ausbiz TV

I joined Andrew G at ausbiz TV to discuss all the latest property trends.

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

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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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

Aussie population passes 28 million

28 million resident population

In recent hours, Australia's estimated resident population passed 28 million, according to the ABS Population Clock. 

Under current assumptions, annual population growth is still running at around 448,000 per annum.

Building approvals slow

Building approvals fell a a further -3.4 per cent in April, to a seasonally adjusted 16,700.

House approvals in New South Wales fell -14 per cent, largely accounting for the monthly drop, but this was coming off the back of a strong prior month.

Overall, trends in home approvals look fairly steady.

Unit approvals in the capital cities also remain steady, if pretty unspectacular. 

Much of the strength in attached dwelling approvals in this cycle has been in coastal and regional markets, which now look to be rolling over, in particular for the high-rise sector.

Overall, approximately 200,000 dwellings were approved over the year to April. 

While this is a stronger annual result, it does look as though the recent strength in dwelling approvals has now reached a turning point.

The market now has to absorb three 25 basis points interest rate hikes, a very challenging Federal Budget, and scary headlines to boot, with unit approvals now appearing to trend lower. 

Finally, over the past 22 months, approvals have consistently been running at about 80 per cent of the government's implied target of 20,000 per month.

Weighing all this up, it looks likely that the housing shortage challenges will remain for longer as higher interest rates weigh on the market for new housing, and population growth continues at elevated levels.

James Foster ran through the dwelling approvals figures in more detail here. 

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GDP to soften

With Australia recording its first trade deficit since 2017, weaker net trade will subtract -0.8 percentage points from GDP in the March quarter, with market forecasts being revised down to around 0.3 per cent for real GDP growth in Q1. 

The Fair Work Commission announced a 4.75 per cent increase in the minimum wage for nearly 3 million award wage earners, keeping real wages in positive territory, but in so doing adding to the case for one more interest rate hike. 

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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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

Sydney & Melbourne downturn entrenched

Housing flatline in May

Housing prices were down in Sydney and Melbourne in May - and Canberra - while growth rates are turning lower in the other capital cities. 

From Cotality's monthly report:

Source: Cotality

Housing market turnover is well down in Sydney and Melbourne, but regional Australia markets have held up better to date.

Over the past quarter, houses prices in Sydney and Melbourne are down by -2.6 per cent and -2.8 per cent respectively, while units in Sydney and Melbourne are down by a more modest -0.9 per cent and -1.1 per cent respectively:

A very interesting quote from Tim Lawless on the divergence in market conditions over recent years:

“We are continuing to see multi-speed conditions across Australia’s housing sector, with Perth and Melbourne at opposite ends of the spectrum. The past five years have seen these cities diverge sharply, with Perth values up a stunning 91.4% while Melbourne home values are only 3.3% higher since May 2021.”

Generally lower priced properties have been more resilient, according to Cotality, but prices are now even declining in the bottom price quartile for houses in Sydney and Melbourne, and for units in Canberra.

Rents rose by +5.9 per cent over the year to May for the fastest pace of growth since September 2024, while rental vacancy rates fell back to record lows. 

Cotality noted that upwards pressure on rents is likely to persist:

Source: Cotality

You can download Cotality's monthly report here. 

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Records...made to be broken

After nine stonking weeks of gains, the US S&P 500 has bounded 20 per cent higher and blazed to new highs, with the CAPE ratio now approaching the unprecedented high of 44.19, reached in December 1999.

Much of the recent euphoria has been around the huge take-up in AI installations.

The price-to-sales ratio of the US stock market is also at extremely high levels. 

Markets have well and truly moved on from the Iranian conflict (and then some). 

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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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

Podcast: What the budget fallout means for buyers, investors and new builds

2-Sense podcast

As the dust settles post-Budget, Chris and I give our thoughts on what's happening and what's next for property markets. 

Here's what we discussed:

"Even before any policy changes are fully legislated, sentiment has shifted: investors are turning cautious, lenders are tightening around serviceability, asking prices are easing in parts of Sydney and Melbourne, and nervous sellers are starting to meet more patient buyers.

Pete and Chris explain why this could create a short-term window for owner-occupiers and first-home buyers, especially if they stay selective and focus on quality assets instead of compromised stock. They also dig into the second-order effects many people miss: weaker turnover, softer stamp duty receipts for state governments, a possible push toward broader land-tax reform, and the way confidence can return quickly once rates, policy or sentiment stabilise.

The episode also tackles the big debate around new builds. While tax settings may steer more investors toward fresh stock, Pete and Chris question whether the numbers really stack up once you factor in high build costs, elevated rates and the risk of owning something the next investor may not value the same way.

Plus, they answer listener questions on refinancing an existing investment property, when interest-only lending may still make sense, and whether downsizers in developer-heavy suburbs could benefit from the changing market."

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

You can also watch the YouTube version here:

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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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

Here comes the data centre boom

Data centre boom

Household spending fell -1.1 per cent in April, with discretionary spending posting its worst result in over two years in falling by -0.8 per cent, as demand destruction in this cycle begins to bite.

In truth, there aren't all that many bright spots in the Aussie economy right now, but the huge surge investment in building data centres (and related equipment spending for fit-outs) and is certainly one of them! 

CapEx reports had been curiously soft up until December 2025, even though it had become obvious that planned expenditure in the sector was ramping up.

Finally we got a boost in the March 2026 quarter, with private new capital expenditure up by 6½ per cent in the quarter, and up 14.6 per cent over the year. 

Investment in IT & telco equipment is suddenly up more than 10-fold since the end of 2023 as the chart turns vertical. 

Source: ABS

James Foster ran through the detailed figures on his blog here. 

Sydney to lead investment

Where will the key data centre hubs be in Australia?

The main beneficiary is set to be Sydney, perhaps most notably the Macquarie Park, Ryde, and Artarmon cluster, as well as Rosehill, Parramatta, Marsden Park, and Horsley Park.

And then there are to be multiple sites in Western Sydney, such as Eastern Creek, Erskine Park, Kemps Creek, and Mamre Road. 

Melbourne has the comparative advantage of swathes of flat and relatively accessible land in its western suburbs and will evidently become a rapid growth challenger in the race for data.

The data centre boom will bring more employment, construction activity, and high-wages jobs to Sydney and Melbourne, for construction workers, electricians, and technicians, with further grid infrastructure to follow. 

In time, there are expected to be economic multipliers and productivity gains across multiple sectors of the economy. 

Brisbane, Perth, Adelaide, and Canberra will all see investment in data centres, albeit at a lesser scale and rate of growth.

Countries in Europe have lately been grappling with high power prices, now calling into question how energy-hungry data centres will impact the energy sector, while thirsty water use is another sustainability concern for the explosion in data centres. 

In other news, the Federal budget has apparently resulted in a continuing downtrend in polling for the ALP government, with interest groups lobbying hard for a walk-back in the capital gains tax proposals for businesses.

---

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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.

Resi construction slowed...except here

Construction headwinds

Engineering construction leaped by 6.9 per cent in the March quarter, driven by a huge $3½ billion increase in Western Australia (probably some of which will prove to relate to capital investment). 

Elsewhere, non-residential building work done was solid enough, but it seems very likely that public infrastructure works will continue to tail off from here. 

Residential construction work done surprisingly fell by -0.6 per cent in the March 2026 quarter, as new homebuilding slowed in all of the most populous states. 

There is one bright spot for residential construction, being for medium- and higher-density projects in Queensland.

Yes, this is partly in the city of Brisbane, but also in this cycle is much driven by the Gold Coast, Redcliffe and Moreton Bay, Caloundra and Maroochydore etc.

Steepling new dwelling construction costs remain a significant concern for developers. 

It also appears that many homeowners are also choosing to stay put rather than upgrade, reflected in rising renovation expenditure (up 3.7 per cent in the March 2026 quarter, and up by 9.4 per cent over the 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 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 here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 17k 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 - check out our free 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.