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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The coordinating body for Australia’s financial regulators has signalled confidence that the housing market has bottomed out, observing a “levelling out” of house prices and lending conditions in its latest <a href="https://www.cfr.gov.au/news/2019/mr-19-02.html">minutes</a>. </p><p>The Council of Financial Regulators, chaired by <a href="https://theurbandeveloper.com/tags/Reserve%20Bank%20of%20Australia">Reserve Bank</a> governor Philip Lowe, said that strong auction clearance rates and improving house prices is evidence of stabilisation in the Sydney and Melbourne housing markets. </p><p>The council said that the housing <a href="https://theurbandeveloper.com/articles/how-does-the-housing-downturn-compare-to-previous-cycles-">downturn</a> had been “sizeable” and market conditions in most other capital cities remain soft. </p><p>The council, which meets quarterly, is the coordinating body for the Reserve Bank, APRA, ASIC and the Treasury.</p><p>Its members also discussed weakening credit growth and declines in lending affected by declining collateral values and <a href="https://theurbandeveloper.com/articles/sydney-and-melbourne-property-prices-rise-first-since-2017">house price</a> falls. </p><p>“Housing credit growth has stabilised at a relatively low level, with lending to investors remaining weak, particularly from the major banks.</p><p>“Housing loan arrears have continued to edge higher, but with significant variation between regions.”</p><p>Housing-related sentiment has received a boost from back-to-back <a href="https://theurbandeveloper.com/articles/reserve-bank-cuts-interest-rate-to-1pc-in-july-meeting">rate cuts</a>, with the Westpac-Melbourne Institute’s “time to buy a dwelling” <a href="https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/economics-research/er20190710BullConsumerSentiment.pdf">index</a> posting its first above-trend reading in four and a half years.</p><p>“Just over 40 per cent of consumers expect [house] prices to be higher in a year’s time — that compares to less than 20 per cent back in March,” Westpac senior economist Matthew Hassan said. </p><p>The post-election kick in business confidence appears to have been short-lived, according to NAB’s monthly business survey — reflecting the council’s concern for weak business credit growth.</p><p>“Business confidence appears to have unwound its spike in May, which we think was driven by a short-term election bounce and increased optimism around a renewed interest rate easing cycle by the RBA,” NAB chief economist Alan Oster said. </p><h2><strong>Sentiment has bounced in residential and commercial sectors</strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/ca6bb67b-bbe5-4450-bf02-b47a9150f014.png" width="1326"/></picture><div><span style="align-content:center;opacity:0.8">▲ Source: ANZ-Property Council.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The pick up in auction <a href="https://theurbandeveloper.com/articles/property-market-recovery-picks-up-steam-">results</a>, along with cash and <a href="https://theurbandeveloper.com/articles/reserve-bank-cuts-interest-rate-to-1pc-in-july-meeting">tax rate</a> cuts and the loosening of home lending restrictions has boosted confidence, but economists largely agree that a return to boom-time conditions is not going to happen. </p><p>ANZ economist David Plank said that a shift back to dramatic increases in house prices is unlikely in the prevailing environment of more stringent credit policies. AMP’s Shane Oliver <a href="https://theurbandeveloper.com/articles/property-market-recovery-picks-up-steam-">said</a> that while the cut may help the market find its bottom, it’s “unlikely to set off another boom”.</p><p>Council members said that ASIC’s <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2019-releases/19-163mr-asic-publishes-submissions-and-announces-public-hearings-on-responsible-lending-guidance/">upcoming</a> public consultation on responsible lending was more about clarifying guidance on existing requirements than changing them. </p><p>“The responsible provision of credit is a cornerstone of consumer protection and is important to the Australian economy.</p><p>“Risks to lenders from housing price falls have to date been limited by the strength of the labour market, low interest rates and the improvement in lending standards in recent years.”</p></div></div></div></div></div>

The coordinating body for Australia’s financial regulators has signalled confidence that the housing market has bottomed out.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australians’ love affair with coastal living over the past two years will soften into the second half of 2022 as people return to workplaces. </p><p>Corelogic’s Best of the Best Report shows the high volume of sales and uplift in property values in some of Australia’s premium beachside destinations. </p><p>While the report indicates Queensland and northern New South Wales are likely to remain strong performers into 2022, research indicates the trend to remote working is likely to decline long-term, which could impact coastal property markets.</p><p>Australia’s residential real estate value has grown $2.2 billion in 12 months to reach $9.4 billion at the end of 2021 off the back of stimulus packages and a white-hot property market. </p><p>Corelogic head of research Eliza Owen said house values increased 22.2 per cent in the 12 months to November, the highest increase since 1989, while more than 614,000 transactions were made across 2021, the highest level in 18 years.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Highest total value of regional house sales—national</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Rank</th><th>Suburb</th><th>State</th><th>Total value</th></tr></thead><tbody><tr><th>1</th><th>Buderim</th><th>Qld</th><th>$747,742,488</th></tr><tr><th>2</th><th>Port Macquarie</th><th>NSW</th><th>$713,969,711</th></tr><tr><th>3</th><th>Hope Island</th><th>Qld</th><th>$688,942,354</th></tr><tr><th>4</th><th>Orange</th><th>NSW</th><th>$619,393,263</th></tr><tr><th>5</th><th>Broadbeach Waters</th><th>Qld</th><th>$577,388,800</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“The popularity of regional Australia is reflected in many aspects of the Best of the Best report for 2021,” Owen said.</p><p>“The quiet coastal suburb of Yamba, in the Coffs Harbour-Grafton region of NSW, achieved the highest annual growth in units of suburbs across Australia, at 56.6 per cent. </p><p>“Regional suburbs were represented in many of the top value growth tables, including Ocean Grove units in Geelong (up 41.7 per cent in the year), Fraser Island units in Wide Bay (up 48.2 per cent), and Campbell Town houses in Tasmania (up 50.5 per cent).”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Highest total value of regional apartment sales—national</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Rank</th><th>Surburb</th><th>State</th><th>Total value</th></tr></thead><tbody><tr><th>1</th><th>Surfers Paradise</th><th>Qld</th><th>$1,238,868,884</th></tr><tr><th>2</th><th>Southport</th><th>Qld</th><th>$551,151,481</th></tr><tr><th>3</th><th>Woolongong</th><th>NSW</th><th>$527,280,556</th></tr><tr><th>4</th><th>Broadbeach</th><th>Qld</th><th>$508,998,002</th></tr><tr><th>5</th><th>Noosa Heads</th><th>Qld</th><th>$462,196,647</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub>^Source: Corelogic&#x27;s Best of the Best Report</sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Coastal regions dominated the top number of transactions for apartments in 2021 with <a href="https://www.theurbandeveloper.com/articles/sydney-developer-plans-tower-on-surfers-beachfront-strip">Surfers Paradise recording $1.2 billion in sales</a>, more than double the second-ranked region of nearby Southport, which recorded more than $550 million in transactions.</p><p>Queensland’s regions dominated the volume of sales transactions, reflecting the strong interstate immigration during the pandemic. Four of five of the highest total value of sales in the apartment market were on the Gold and Sunshine coasts, while three of five regional house sale volumes were in the sunshine state. </p><p>Regionally houses on the Sunshine Coast, Gold Coast and Northern NSW coast recorded the highest median values across the country with Byron Bay taking out the top spot. The median value of a house at Byron Bay was $2,597,443, followed by Sunshine Beach and Casuarina.</p><p>Owen said it was likely Australia’s property market had seen the peak of value increases as worsening affordability constraints, a surge in vendor activity and a recent tightening of housing finance conditions begin to take effect. </p><p>Owen said sales and listings activity had likely also peaked. </p><p>“The constraints of slightly tighter credit conditions, the erosion of housing affordability and a higher level of listings being added to the market are expected to see softer growth rates across property values in 2022,” she said. </p><p>“These forces are an accumulation of headwinds for property market performance. Softer growth rates are likely to coincide with fewer purchases, where sales and listings activity eventually move with momentum in price.”</p><p>According to the quarterly statement of the Council of Financial Regulators housing prices were &quot;still rising briskly in most markets&quot;, but the pace of uplift had slowed.</p><p>“Council members reiterated their support for APRA&#x27;s decision in October to increase the interest rate serviceability buffer for home lending,” the council said in a statement.</p><p>“Given the risks that had been building, this measure will help to support the resilience of both new borrowers and lenders. </p><p>“It remains too early to assess the effects of the measure; members will continue to monitor developments closely.” </p></div></div></div></div></div>

Australians’ love affair with coastal living over the past two years will soften into the second half of 2022 as people return to workplaces...

COUNCIL OF FINANCIAL REGULATORS