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Property related tax revenue moves beyond the $40 billion mark for the first time on record

Last week the Australian Bureau of Statistics (ABS) released data which revealed that 48.7% of state and local government taxation revenue over the 2013-14 financial year came from property related taxes. The data showed that over the year, state and local governments collected a record $40.485 billion in taxes from property related sources.   In comparison, […]

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Some ideas about measuring the relativity of housing costs

Measuring the cost of housing and housing affordability is such an abstract idea because it is not a one size fits all measure and there are so many factors which contribute to affordability or unaffordability. Most of the common measures have one or a number of glowing weaknesses which I will cover. Interest rates What […]

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Inflation adjusted home value growth: Sydney and Melbourne are the only capital cities where dwelling values have risen at a faster pace than inflation over the past five years

The Australian Bureau of Statistics (ABS) released Consumer Price Index (CPI) data for the March 2015 quarter yesterday. The data showed that over the quarter, headline inflation was recorded at 0.2% taking annual inflation to 1.3%. The Reserve Bank’s (RBA) preferred measures of underlying inflation, the trimmed mean and weighted median, were recorded at an […]

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Australia has a glut of bedrooms but a dearth of policies in place to make these rooms and homes available to those who need them most

The last Census showed that across Australia we have ample bedrooms to cater to our population yet the lack of new housing supply over recent years along with increasing demand for homes has resulted in increases in home values. Particularly in Sydney and Melbourne the escalation in home values over recent years has been strong […]

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Highest spend by suburb 2014

One billion dollars a week on Melbourne property in 2014

Key points Over one billion dollars a week was spent of residential real estate last year Brighton recorded the highest spend, $842m Glen Waverley recorded a $233m rise In 2014 a total of $53.7b, over one billion dollars a week, was spent on Melbourne residential real estate. In 2014 a total of $53.7b, over one […]

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The RBA’s Financial Stability Review and analysis of the housing market

The Reserve Bank (RBA) released its bi-annual Financial Stability Review (FSR) earlier today. The document provides a guide as to the RBA’s thoughts on the overall economy and potential risks. As you’d expect, the residential housing market features heavily in their assessment of financial stability and I will delve into some of the key take-outs […]

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Melbourne sales million dollar table

Where are most of Melbourne’s million dollar homes sold?

Key points Over the past 5 years the number of million dollar homes sold has almost tripled; Glen Waverley and Mount Waverley are in the top 10 and were not 5 years ago; Nearly 10,000 homes have sold in the last year for more than $1m. Five years ago there were 3,335 homes sold for […]

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There’s never been a better time to reform stamp duties

The Federal Government is to shortly release a white paper on taxation reform.  Plenty of recent inquiries and taxation documents have specifically noted that the taxation treatment of property should be reviewed and if ever there was a good time to look at changes to stamp duty it would be now. Given where the property […]

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How does the current growth cycle compare to the 2001 to 2004 boom?

In this week’s blog we take a look at how current housing market conditions compare with the boom in home values between 2001 and early 2004.  Immediately a point to note is that the current housing market upswing came off the back of dwelling values falling over the previous two years. If we assume that […]

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Why would deflation of our largest asset class be a good thing? | RP Data

Why would deflation of our largest asset class be a good thing?

Balancing an economy is undoubtedly a tough ask for anyone. Our inflation targeting Reserve Bank looks to maintain inflation within a range of 2% to 3% on an annual basis over the cycle.  Too much inflation is not ideal, nor is deflation, so the RBA tries to tweak monetary policy to stimulate the economy in […]

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