The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
7
print
Print
ResidentialRenee McKeownThu 15 Apr 21

Property Industry Expects Interest Rate Rise

ce84e033-98d1-4b0b-98c5-de2639aaf180

Property industry confidence levels are near record highs but there are rumblings that interest rates could to increase soon.

The ANZ/Property Council industry survey for the March quarter found confidence levels has improved drastically since the pandemic started, led by the residential sector.

The survey canvassed the views of more than 830 respondents—including, owners, developers, agents, managers, consultants and government—across all major industry sectors and regions.

The results revealed respondents also believe there will be an interest rate increase during the next 12 months.

This comes as the Reserve Bank of Australia closely watches the housing market as “cyclically low-interest rates and rising asset prices create a risk of excessive borrowing”.

According to the RBA financial stability review, this could lead to financial instability particularly if lending standards are weakened, which could expose lenders to large losses.

Interest rate changes

^Source: RBA

For the meantime, the Reserve Bank decided to hold the official cash rate at 0.1 per cent for the fifth time in a row.

Despite expecting an interest rate rise, survey respondents were confident about work expectations, national growth and house prices in the next year.

Property Council of Australia chief executive Ken Morrison said the expectations for house prices were at the highest level in the survey’s 10-year history.

“When the property industry is confident it is exceptional news for the entire national economy because it employs so many people—more than 1.4-million Australians,” Morrison said.

“While the economy still faces significant challenges, the property industry is clearly buoyed by the speed of our turnaround and the strong demand they are seeing, particularly in the residential and industrial sectors.”

ANZ senior economist Felicity Emmett said that for now the combination of record low mortgage interest rates and targeted stimulus was clearly supporting the housing sector.

“Property sentiment has improved again, reflecting stellar economic performance, a large pipeline of work for the coming year and a strong outlook for property prices,” Emmett said

The survey also revealed an easing of concerns about the office sector as more CBD workers return to their work places.

ResidentialAustraliaFinanceSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
High-density residential construction in Melbourne
Exclusive

Stabilising Conditions in Melbourne Bring Hopes of Improved Feasibility

Leon Della Bosca
6 Min
QBCC project trust accounts hero
Exclusive

Developers Warned as Commission Cracks Down on Subbie Pay Scheme

Clare Burnett
7 Min
Urban Infill site at Tonsley SA
Exclusive

SA Grapples with ‘Development Killer’ Carparking Law Changes

Leon Della Bosca
7 Min
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
View All >
It was for a 2809sq m project next to Bunnings Gregory Hills at 38-44 Lasso Road owned by Anric.
Retail

Anric Gets Go-Ahead for Sydney Suburban Hospitality Hub

Renee McKeown
The underpass site in Southbank that the City of Melbourne plans to turn into a community park.
Community

Melbourne Moves Ahead on Overpass-to-Park Plan

Marisa Wikramanayake
Sponsored

Property Scholarship Offers Lifeline for Aspiring Women

Partner Content
Castle Group funds university study to knock down financial barriers keeping women from property careers...
LATEST
It was for a 2809sq m project next to Bunnings Gregory Hills at 38-44 Lasso Road owned by Anric.
Retail

Anric Gets Go-Ahead for Sydney Suburban Hospitality Hub

Renee McKeown
2 Min
The underpass site in Southbank that the City of Melbourne plans to turn into a community park.
Community

Melbourne Moves Ahead on Overpass-to-Park Plan

Marisa Wikramanayake
3 Min
Development

Property Scholarship Offers Lifeline for Aspiring Women

Partner Content
3 Min
Education

Why Developers Should Be Doing Due Diligence on Lenders

Partner Content
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/survey-says-interest-rates-will-rise