Above is an interesting segment, screened on ABC’s The Business last night, discussing the state-of-play across Australia’s various housing markets.
According to the segment, which includes interviews with SQM’s Louis Christopher and Fujitsu’s former director Martin North, this housing cycle is nothing like earlier episodes. In particular, sales are being driven by investors and credit growth is low. Growth is also multi-speed, with Sydney going gangbusters, Melbourne solid (but patchy), Brisbane subdued, Perth slowing after strong mining-led growth, and Adelaide and Hobart soft.
Louis Christopher also warns that the investor-led market risks a swift reversal in the event that sentiment changes or mortgage rates rise, since they tend to be more opportunistic than owner-occupiers and less likely to be in for the long haul.
Nothing we don’t already know, but worth a look, even if only for the dodgy looking auctioneer in the bright pink suit.
