Daily Buzz: Wednesday, 6 March
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PropertyBuzz, your daily dose of property news.
Property price gains could push back rate cuts, NSW residents chip in on potential rental reforms. And should investors be better incentivised?
Welcome to Property Buzz! I’m Orana Durney-Benson.
Today is Wednesday the 6th of March, and
An economist has warned that Australia’s property price surge could delay rate cuts.
– HSBC Bank’s chief economist, Paul Bloxham, has warned that rising housing prices across the country may reduce the likelihood of rate cuts in the near future.
– In spite of elevated interest rates, strong population growth and ongoing undersupply means that the prospects of house price growth are still strong, with the economist predicting a 3 to 6 per cent rise this year.
– He suggested that a tight housing market and low market default rates could cause the Reserve Bank of Australia to delay rate cuts, out of fear they could overheat an already-buoyant market.
– The HSBC economist predicted that the RBA will be reluctant to cut rates this year.
Looking over to New South Wales, a survey of 16,000 residents has revealed that opinions are divided on proposed changes to the Residential Tenancies Act.
– Opinions varied on the proposed changes, which include an end to no-grounds evictions, making it easier for renters to have pets, and establishing a portable bonds scheme.
– Renters were largely in favour of the reforms, while landlords and real estate agents were largely opposed to them.
– The feedback will reportedly inform the government’s position on reforming rental laws, with the aim of increasing security for both tenants and owners.
And turning to a different state, to Real Estate Institute of Victoria has urged the Victorian government to attract and retain property investors in the state’s 2024 to 2025 budget.
– REIV President Jacob Caine suggested reconfiguring the property tax policy by replacing outdated taxes like stamp duty with measures that encourage investment and increase housing supply.
– The REIV proposed three key changes: introducing tax incentives for long-term landlords, a complete review of stamp duty regulations, and retaining negative gearing.
– They believe that these changes would make Victoria more competitive for investment, bolster housing supply, and stabilize the rental market.
That’s Property Buzz for today.
See you again tomorrow, the 7th of March, for your daily dose of Property Buzz.
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