The Australian residential property sector seems to be on the rise still, according to the Reserve Bank of Australia (RBA).
In the minutes to its most recent policy meeting, which were released on July 16th, it explained that residential investment was flat overall, as more people looked to buy new dwellings rather than spend money on alterations.
Conditions are expected to be favourable in the construction sector, because new build approvals are on the rise. It is expected that more new dwellings will be approved moving forward as the demand for housing continues.
The RBA decided to leave interest rates on hold at 2.75 per cent in July, while the cuts implemented so far have helped to encourage people to buy into the property market.
This has been shown by the increases in home loan approvals noted by the Australian Bureau of Statistics. However, despite lower interest rates, the value of residential financial commitments has also been rising.
Posted by Steve Douglas
