Demand for home loans has increased for another month. The Australian Bureau of Statistics reports the number of owner occupiers taking out mortgages rose 1.2 per cent in August, seasonally adjusted. And the percentage of first home buyers rose 0.4% to 15.3 per cent in August helped by the perception the Reserve Bank won't be raising rates in the near term.
Meanwhile, the value of dwelling transactions has fallen by more than 18 per cent over the 2010/2011 financial year - according to RP Data. That's the largest yearly fall in sales in more than a decade. In each state, except for NSW the decline was the greatest recorded. The largest fall was in Queensland, dropping 27.5 per cent. South Australia recorded the best result, with a 1.3 per cent increase.
Residential property is no longer set to be the country's highest-returning asset class according to research by ANZ. For the past 24 years it has worn the crown, outstripping even shares, but now ANZ forecasts commercial property will be a better investment over the next decade, with equities taking the top spot. Owner-occupied housing has seen average returns of 12 per cent since 1987 when costs and taxes were included.
And taking a look at rental prices, nationally, rents for houses fell by 0.2 per cent while rental prices for units rose 1.1 per cent in the quarter to September this year. Sydney, Melbourne, Brisbane, Perth and Darwin house rents flat lined - with no growth reported over the quarter. It was only Sydney that saw growth in unit rental prices, with a rise of 2.2 per cent. Darwin is still the most expensive capital city to rent a house, with a median weekly price of $550. Sydney is the most expensive city to rent a unit with a weekly price of $460.
