Demand for property dropping in Australia, says REA Group
According to the REA Group Property Demand Index report, after peaking in October and November, demand for property in Australia dropped slightly to close out 2016, with the index falling 6.6% nationally in December.
Victoria saw the largest decline over the month, driven by low levels of demand for both houses and apartments. New South Wales followed closely, suggesting the housing boom may be over, or at the very least slowing quickly, in both Sydney and Melbourne.
Despite December declines, Tasmania, New South Wales and Victoria continue to see the highest levels of demand in Australia with Western Australia and Northern seeing the lowest.
“The key drivers of this demand decline are likely due to Australian banks increasing interest rates for buyers independently of the Reserve Bank of Australia in late November and early December and continuing affordability issues across the Eastern seaboard.”
Source: REA Group