Returning volatility may prevent large house price falls
Recent fluctuations in capital growth rates in residential property in Australia indicate the likelihood of large falls in the market has decreased, according to the PR Data Rismark National Residential Property Value survey.
However, this projection is contingent on a “stable interest rate environment, which is likely to result in a static rate of growth”, head of research Matthew Hardman said.
The May survey found the housing market was experiencing a “higher level of volatility from quarter to quarter” along with all asset classes, he said.
Capital growth in the key housing markets of Sydney and Melbourne was found to have had “flattened considerably during 2008, in particular, but the recent return of volatility indicates this pattern may be coming to an end”.
Hardman is “confident that the supply side imbalance in the national housing market will see further property value increases over the next five years”.
“We expect low levels of housing supply to continue placing upward pressure on housing prices over the long term,” he said.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
