by Marshall Cobb - Head of New Projects
Plenty happened around the traps this week, even though it was a short one. One of the more important things was the speech by RBA Governor Philip Lowe on how do we sustain Australia's prosperity. In summary he said...
"Any increase in interest rates looks to be some time away. The Board's view is that by holding rates steady, we can help promote a sense of stability and confidence. We hope that this helps Australians make the decisions that can help build the future prosperity of the country that we are so fortunate to live in."
If you fancy the full read, here is the complete transcript and graphs.
Also of interest was the Core Logic report that high-end property values are falling, while affordable values climbed. For example in Sydney the 10% most expensive properties were down by 7.3% and the cheapest 10% were up by 1%. They claimed that, “A surge in first home buyers taking advantage of stamp duty concession is keeping a floor under housing demand, and supporting the stronger conditions across the lower-valued end of the market”. Read more.
I would also add that the massive infrastructure boom in Western Sydney region is underpinning the property market values in the more affordable suburbs.
So for the best place to invest - go west! (I am a poetic genius!)