AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Overall, down by 11 to -20 points (from -9 in the third quarter) and below its long-term average level (of +12), the NAB Residential Property Index fell to a new survey low in the fourth quarter of 2018. The index was dragged down by VIC and NSW due to the pressure on the prices in big cities like Melbourne and Sydney.
After the negative sentiments in the housing market since long, the confidence levels also fell below average, which may mean that the market momentum will ease further. The outlook is gloomy over the next 1-2 years as the professionals are anticipating sharper price falls in VIC and NSW. Across the remaining of the country also the prices are expected to remain flat or fall. However, the rents are set to yield major improvements while house prices are falling fast. Â
As much as 15% of a decline is expected to be seen in Sydney in the next year. Where the remaining states will remain mostly flat, Perth is expected to see some more small declines. This is seen as a healthy correction to the previous large upswing in prices, and it is expected to see price movements on the East coast and the declines to remain orderly. What will further weigh on the prices is the tightening in credit conditions (which was attributed to the royal commission last year) and weaker price expectations.
2018 was a weak year for the Australian housing market, and the NAB Residential Property Index fell to newer levels with the falling housing prices. In the coming six months, Sydney's average house price is set to go below the $1 million mark which is a milestone it touched in 2015, if the prices continue to fall at the current rate.
Compared to what they were a year ago house prices are now 6.5 percent lower nationally, while unit prices fell 2.9 percent over the quarter and 5.3 percent over the year. This fall is expected to be the sharpest in the last two decades.
The quarterly fall in Sydney across 2018 were steady, if we see this the median price may dip below $1 million as per analysts. Now the borrowing is not as easy as it was earlier and delayed approvals due to higher scrutiny by banks. Not just investors but the owner-occupied lending was also down 1.4 percent over the month.
National Australia Bank Limited (ASX:NAB) traded higher by 0.286% or $0.070 and closed at a $24.580. The company has an EPS of 2.013 AUD and P/E of 12.180 which compares well in the peer basket. The bank has had a performance change of 3.72% year to date.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
