Global Power | Local Knowledge | Uniquely Personal

Property cooling but still driving the economy

The Australian property market is starting to slow, but it is still a major driver of the economy in the nation.
New governmental figures have shown that the boom in the Australian property market is starting to cool off at last, but it remains the biggest positive factor in the economy at present.

In the latest report from the Australian Bureau of Statistics, it was reported that the number of home loan approvals stayed static in May when compared to the month earlier.

While this shows that the market's growth period is now starting to cool off, it is still far stronger than was expected - experts had predicted a drop of 0.5 per cent in mortgage approvals for the month.

“Housing finance has flattened out at a pretty high level. It’s risen substantially and now, along with building approvals, it’s just taking a bit of a pause,” said ANZ head of Australian economics Justin Fabo.

He said that the number of sales and auctions across the nation are remaining high when compared to recent years, showing how the market is still an important part of the economy. 

A slowing in activity was also recently reported in the number of foreign buyers coming to buy homes in Australia, with a report stating that it dropped significantly in the second quarter of 2014. 

Posted by Craig Francis

DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact

Subscribe Now