- Interest rate rises are affecting Perth property investors, and both Perth and Sydney are facing property price falls.
- Rate hikes impact Perth homeowners' budgets.
Perth Housing Market Slowdown Driven by Rate Hikes and Tax Policy
What happened
According to REIWA, new listings in Perth have increased, but sales have dropped to levels last seen in 2019. This slowdown is attributed to multiple interest rate increases, the rising cost of living, and the Federal Government's changes to taxation policy in May. Investors are reluctant to purchase homes following the removal of negative gearing, while first home buyers are hesitant due to severely eroded borrowing capacity and increased loan repayments.
From miragenews.com
Why it matters
The combination of interest rate hikes and the removal of negative gearing is significantly impacting the housing market in Perth. This trend mirrors challenges seen in Sydney, as both cities face property price falls. The reduced borrowing capacity is specifically affecting the ability of first home buyers to enter the market.
Interest rate rises are already affecting Perth homeowners' budgets, and both Perth and Sydney are facing property price falls.
From miragenews.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- National Australia BankSpeculative
National Australia Bank could see reduced loan applications and increased risk exposure due to lower borrowing capacity and demand.
Keep exploring
The entities involved
-
Perth
capital city of Western Australia, Australia