Source: MIL-OSI Submissions
Q3 Property Market & Economic Update – According to Kelvin Davidson, CoreLogic Senior Property Economist: “There doesn’t seem to be anything too major in the pipeline that would throw this steadiness off course, but there are some important milestones to watch out for in the final few months of the year – including another potential cut to the official cash rate (OCR), a possible loosening of the loan to value ratio (LVR) speed limits, and the final decision on bank capital requirements.”
In the macro economy, the news remains supportive for the property market. GDP growth is set to stay above 2% annually, full-time employment is still rising, and the unemployment rate is very low.
Net migration is still high too, which is another support for property demand. In addition, lending conditions have, if anything, eased a bit in the past few months – most importantly, the banks have become less strict on their internal serviceability testing.