Statement by Philip Lowe, Governor: Monetary Policy Decision

Full minutes of the meeting follow.

International economic development Members commenced their discussion of international economic developments by noting that the global outlook had improved, and risks had become more balanced, because of progress in vaccinations and the provision of additional fiscal support. Growth in the global economy was expected to rebound solidly in both the current and the following year. Even so, the global recovery remained uneven. Output remained well below pre-pandemic levels in a number of countries because of recurring outbreaks of COVID-19, and in some emerging market economies, where financial conditions had tightened, there was limited scope for ongoing large-scale fiscal support. The level of output was expected to remain below its pre-pandemic trajectory in many economies over the forecast period, with the United States and China notable exceptions.

Understanding the level of vendor discounting in an area is important as it can help you determine the level of demand for property in the area.

Policy actions during COVID The Reserve Bank of Australia (RBA) has taken a number of complementary policy actions to support the Australian economy since the onset of COVID. The RBA has lowered its policy interest rate to near zero, set a target for the 3-year government bond yield, enhanced its forward guidance, commenced a program of purchasing government bonds and provided long-term low-cost funding to the banking system. I will explain each of these actions in more detail shortly.

The Chart Pack summarises macroeconomic and financial market trends in Australia and provides some information about developments for our main trading partners. The graphs in the Chart Pack are updated monthly.

Over the past 12 months, we’ve started to see a lot more interest in both buying and selling property off-market.

The exceptionally strong growth in house prices shows no sign of slowing down with the latest data from CoreLogic showing dwelling values are rising at the fastest rate in 32 years.

2021 has started in strong fashion as most property markets across the country continue to see rising prices. According to the latest data from CoreLogic, house prices are up once again in February and it appears that the big banks are also predicting significant price gains over the next 12-24 months. Month to date, house prices in our major capital cities are 1.2% higher according to CoreLogic, taking the year to date gains to 1.4%. Out of Australia’s five largest cities, Perth has so far been the strongest this year, with gains of 2.4% followed by Brisbane at 1.5%.

Despite experts suggesting house prices were going to see a sharp contraction in 2020, the latest data indicates the opposite has occurred. According to CoreLogic, house prices increased in value across the country in 2020, finishing the year 3.0% higher across the nation.

Whether you are an aspiring property investor considering taking the plunge or a full time investor wanting to brush up your knowledge, this article gives you seven key property investing market fundamentals to consider.

Many people will have set property investing goals for the new year and unfortunately, many will fail to achieve them.  Others may not set any goals at all, because it is very easy to just live in the present without a set plan to move forward, which is an easy habit to fall into. Whether you’re a new or existing property investor, it can be incredibly beneficial to set property investing goals to guide your investing for the year to come. These tips can help you set your 2021 property investing goals and ensure you don't lose sight of them and are able to take the necessary steps to see them achieved.

Despite the negative headlines early in the year, house prices across the country have continued to rise with experts signalling there could be more gains ahead in 2021.

Prospecting for new, feasible development sites is hard. Which is why Real Estate Investar is excited to be partnering with Archistar. We aim to make identifying and assessing small scale property development opportunities as quick, painless and accurate as possible. We are thrilled to be adding Archistar's deep-dive property development software to our already powerful suite of tools to make property development easier for investors. Level the playing field and use the same platform that Mirvac, Frasers and other major property developers are using to assess their next site! Real Estate Investar members will have access to the Archistar "Starting Out" package with the following features: National access Find Sites - search, site details, filter and digital planning library Map Visualisations - base package which includes zoning, overlays, heritage, building height, contours, flooding, bushfire and basic satellite imagery Assess Sites - quick estimate (residual land value) and due diligence reports Domain Listings and Suburb Insights Commercial Real Estate Listings

The resurgence in the Australian property market has continued in October, with dwelling values increasing in all states except Victoria.