Price growth easing, is the growth cycle nearing an end?

Price growth easing, is the growth cycle nearing an end?
Jennifer DukeDecember 7, 2020

Dwelling price growth is easing, according to the latest Australian Bureau of Statistics (ABS) data, and people are beginning to wonder when, and if, the growth cycle will end.

Property prices are up 9.1% year on year, according to the ABS. For established houses, this figure sits at 9.2%, while for attached dwellings it is at 8.5%.

The Housing Industry Association senior economist, Shane Garrett, said that the figures are a welcome addition to the data that show that price growth is easing to a “much more sustainable rate”.

“The annual rate of home price growth nationally is back in single figures for the first time in a year,” said Garrett.

“At the same time, new home building is stretching to its busiest year in two decades.”

“This is no coincidence.”

Garrett said that the housing industry is looking to meet the increased housing requirements, but noted that capacity is bursting at the seams.

“Any home builder will tell you of the difficulties in sourcing crucial trades like bricklayers, at a time when training budgets in the industry are being slashed by government,” he said.

He also pointed to restrictive land supply.

“It is important that federal and state governments ease the bureaucracy around the release and development of land for new housing. This will help ensure that strong dwelling price pressures do not emerge again in future.”

{mijopolls 62}

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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