Daily Buzz: Wednesday, 8 November
By
PropertyBuzz, your daily dose of property news.
The cash rate that stops the nation, Commercial Sales Plunge to a Ten-Year Low, and how clean energy is impacting property prices.
Welcome to Property Buzz! I’m Grace Ormsby. Today is Wednesday, the 8th of November.
and  The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 4.35 per cent, overshadowing the race that stops the nation – the Melbourne Cup.
– The decision was influenced by the recent increase in the Australian Bureau of Statistics’ Consumer Price Index indicating inflation’s slowdown is not yet complete.
– Critics argue the RBA acted prematurely, as annual inflation decreased for the third consecutive month. They suggest supply side factors, not demand, contributed to the September quarter result.
– The property market is expected to remain robust despite the rate increase, with potential for subsequent rate cuts and opportunities for homeowners to downsize and reduce their mortgages.
Looking to the commercial market, and all core commercial sectors in Australia saw over a 50 per cent drop in Quarter three activity, compared to the previous year, with only $8 billion worth of deals taking place.
– The decline is being caused by high pricing and prevailing economic and geopolitical issues impacting investor confidence, according to MSCI
– The office sector experienced the most significant decline, with sales falling by nearly 80 per cent compared to Q3 2022, and Singaporean investors, who typically dominate this sector, have been notably quiet.
– Despite a slight decrease in the rate of decline, MSCI predicts a lackluster Q4 2023, with only $3.5 billion of transactions in the pipeline.
And finally, Â 70 per cent of Australians believe energy efficiency increases home value, with popular features including solar panels, double glazing, insulation, and LED lights.
– A CommBank report found seven in ten of Australians think energy efficient features can significantly increase property value, with 75 per cent considering them essential.
– Despite the interest, the cost of upgrades is a barrier for many, with 60 per cent citing this as the main obstacle to making their homes more energy efficient.
– The green trend is also leading to increased interest in ‘green leases’ and eco-friendly commercial properties, and banks offering green home loans for climate-friendly upgrades.
That’s all for today.
See you again tomorrow, the 9th of November, for your daily dose of Property Buzz.
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