The Real Estate Institute of Australia says the June 2016 quarter CPI figure is good news for home buyers and renters.
According to the Real Estate Institute of Australia (REIA), the June 2016 quarter CPI figure is good news for home buyers and renters.
“Overall, the All Groups CPI, increased by 0.4% in the June quarter giving an annual increase of 1.0% - the lowest annual changes since June 1999. These figures are well below the RBA’s target zone of 2-3%. The annual changes for the analytical series of trimmed mean and for the weighted median were 1.7% and 1.3% respectively. This is the lowest annual increase since the two series were introduced in June 2003 and should provide scope for an interest rate cut when the RBA Board meets next week” the President of the REIA Neville Sanders said.
“The Housing Group increased by 0.4% for the quarter and 1.3% for the year to June 2016 with rents increasing by just 0.2% for the June quarter and 0.7% for the year.”
“From 2013, when investment in housing started to pick up, we have seen the rate of increase in rents slow down in Australia. The annual increase in rents to June has been the lowest since December 1994.”
“The latest CPI figures provide further evidence that the current taxation arrangements which provide many Australians with the opportunity to invest in property adds to the housing supply and keep rents lower than they would otherwise be.”
“With the CPI figures always a central component of the RBA’s decision, the latest inflation data looks like being the trigger for a rate cut next week. A cut following the one in May will improve affordability for existing and prospective home buyers,” concluded Sanders.
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