This official cash rate dropped to a record low of 2 percent in May this year. This move was expected to increase foreign investment, but the government has introduced measures to curb this in the Federal Budget, which will come into effect shortly. In the meantime, dwelling values across the nation have risen and while more residential listings are being added to the market, the number of new listings are still lower than this time last year.
According to CoreLogic, Australian dwelling values rose by 0.8 percent during April. The only exception was Canberra which showed a 1.5 percent drop during the month.
Over the last 12 months to April, the rate of capital gain has slowed in most capital cities. Two exceptions being Sydney and Melbourne markets, which seemed to get a second wind when the official cash rate was lowered in February. To curb a reoccurrence of this the government has introduced a foreign investment application fee of $5,000 for property under $1 million, and a $10,000 fee for property over $1 million and each additional $1 million thereafter.
An increase in property listings has been noted over the last four weeks, when compared to the same time last month. New listing numbers, on a capital city basis, have risen by 7.6 percent for houses and 10.5 percent for units. Vacant land listings have decreased by 2.7 percent. However, when compared to annual data from the same time last year, new residential listings are lower in capital cities, apart from the Northern Territory where listing numbers are 5.8 percent higher.
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