RBA notes developers report demand for off-the-plan apartments has declined significantly: December meeting minutes

The RBA's minutes for the December cash rate meeting have noted demand for off the plan apartment had declined significantly since mid-2017.

The RBA also suggested that liaison with developers indicated that demand for new detached housing in eastern Australia had eased over the previous year or so and some developers had reported that this decline in demand had become more pronounced.

"Given the substantial amount of work outstanding and recent data on dwelling approvals, dwelling investment was expected to remain around this level for at least the following year or so before moderating," it noted.

They said that dwelling investment has continued around its recent high level in the September quarter, and given the substantial amount of work outstanding on dwelling approvals, dwelling investment was expected to remain around this level for at least the following year or so before moderating.

Again Sydney and Melbourne were the main housing localities for the eastern capital decline. 

"Members observed that housing prices had fallen across all price segments in Sydney," the minutes noted, adding house prices had fallen by around nine percent since September 2017 to be around their September 2016 levels.

They said Melbourne levels have dropped back to what they were around March 2017, having seen a decline of just under six percent since their November 2017 peak.

"Auction clearance rates and indicators of private-treaty activity had also declined a little further in both cities," the RBA also added.

Despite the property market decline, the RBA found that, having liaised with retailers, that underlying trading conditions had been stable.

Surveys suggested that households' views about their financial situation had remained around average.

For the full RBA minutes click here.