The stats that matter
5
5 rate rises in 5 months taking the official cash rate to 2.35% the highest since 2015.
| Loan Size | Increase in repayments for Sep .5% increase | Total increase in repayments w/5 rate rises (May – Sep) |
| $500,000 | $144 | $614 |
| $750,000 | $216 | $922 |
| $1 million | $288 | $1,229 |
14
14 percent fewer properties were available in Adelaide over the winter months.
27
After 27 months of unprecedented price growth, Prices have plateaued for the first time.
40
40 percent fewer properties are available for rent right now.
Commentary
We are coming to the end of the rate hiking cycle. With strong Federal and State spending on infrastructure in SA, there is job creation, as well as new industries taking off, coupled with a housing shortage. Adelaide (along with Perth) is well positioned and relatively inexpensive compared to the rest of the country to weather the storm that is being seen on the Eastern seaboard.
With fewer properties available for sale we have still seen strong results across the board. We have seen an uptick in investors looking, with increased interest in the unit and apartment market.
The chatter around house prices falling by 10-20% (depending on who you listen to or what you read) is just that, chatter. In some pockets of the country there well and truly would have been a decline in house prices however it would be irresponsible to throw a blanket over the market. Depending on suburb, property, and price point we continue to see price growth
With rental vacancies at almost 0%, the rental market is very tight and in some cases renters have to line up and sometimes pay up to secure a property. This provides investors with increased confidence that they can weather the rate rise cycle and reap the benefits of capital growth and yield.
Let me know your thoughts.
Yianni Garbas 