The Reserve Bank of Australia (RBA) which meets in the first Tuesday of every month, left interest rates unchanged at 2.50% stating amongst other matters that “Housing and equity markets have strengthened further, trends which should in time be supportive of investment”.
The RBA notes “… recently there have been the signs of increased demand for finance by households, the full effects of these decisions are still coming through, and will be for a while yet”.
The pick up in building approvals and the RBA’s mention of the pick up in household finance demand augurs well for the property market’s contribution to Australian GDP growth in coming years.
Continued strong population growth in conjunction with subdued construction, are two factors that underpin the anticipated growth in the property development market.
Total value of dwelling commitments
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