A Move From the Top

Yesterdays decision by the Reserve to leave rates on hold is the first in a series required to reinvigorate a sense of urgency in the current market. The underlying factors remain strong with growth in our GPD, the gradual firming of the labour market, growth in wages, new super rates and a government that undertakes to negotiate on super taxes. These factors mainly unresolved in recent months led some of the changes with dwelling prices rising more slowly than earlier in the year.

Local infill policies under Directions 2031 look at our population with great optimism to accommodate our growing population by 2031. A move to regional urban centres, with local amenities will address the urban sprawl and services industry employment difficulties suffered by the city. The opportunity to redevelop existing residential areas looks promising towards the medium long term within reach of the all important coastal lifestyle and could address some issues around affordability.

Nevertheless with builders and developers squareling for land, it is obvious we are currently still experience strong demand for land. We could even be optimistic to think the limited availability of land could see history be repeated with the phenomenal growth experienced in 2006. With the GFC and global market uncertainties looming finance is harder to come by with more lenders requiring larger deposits.