Dwelling prices grow more than 10% for year to August: NAB

Dwelling prices grow more than 10% for year to August: NAB
Dwelling prices grow more than 10% for year to August: NAB

Momentum in the economy is stretching across the non-mining economy beyond the dwelling sector, according to National Australia Bank group chief economist Alan Oster.

In the latest Bigger Picture – A Global & Australian Economic Perspective report he said household consumption growth is expected to remain below trend and is reliant on a decline in the household savings ratio which is vulnerable at present to weak consumer confidence.

"Against that, there is increasing evidence that growth momentum is broadening across the non-mining economy – not limited to the dwelling sector – in response to the lower AUD and interest rates, with improvement particularly evident in services sectors," he said.

"Residential markets remain strong, with dwelling prices continuing to grow more than 10% over the year to August.

"Surprisingly, dwelling investment surprisingly fell by 1.9% in Q2 despite strength in building approvals and a very elevated stock of residential projects in the construction pipeline. While this did follow growth of over 6% in each of the two preceding quarters, this weakness is likely only temporary given record levels of work to be done. "

Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

Tags: 
House Prices Dwelling Values

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