The R.B.A. , in their August 2016 statement has indicated that global economies continue to be uninspiring, the commodities boom is dead and the local property market is now less exuberant due to the R.B.A’s supervisory measures. They State:
“Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in lending for housing purposes has slowed a little this year. All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished.
Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.”
I see this as a reasonably positive statement, from a property renovators view. certainly the heat has gone out of the property market in inner west Sydney and the eastern suburbs. The newly formed inner west council looks set to operate in a more professional manner than the 3 councils they now replace. This may, hopefully, transpire into more effective planning decisions and speedier development application approvals – we live in hope!