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  • Latest CPI figure good news for Australian home buyers and tenants

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    The latest national CPI figure for the September quarter is good news for Australian home buyers and renters, according to the Real Estate Institute of Australia (REIA).

    REIA President Neville Sanders said the All Groups CPI increased by 0.7 per cent in the June quarter giving an annual increase of 1.3 per cent.

    “This is marginally higher than the annual increase to the June quarter of one per cent, which was the lowest annual changes since June 1999,” Mr Sanders said.

    The annual changes for the analytical series of trimmed mean and for the weighted median were 1.7 per cent and 1.3 per cent respectively.

    “This is the same as for the previous quarter and the lowest annual increase since the two series were introduced in June 2003. This is well below the RBA’s target zone of two to three per cent and suggests the continuation of historically low interest rates,” Mr Sanders said.

    The Housing Group measure increased by one per cent over the quarter, and lifted 1.8 per cent for the year to September 2016, while national rents increased by 0.3 per cent for the quarter and 0.7 per cent for the year to September.

    Mr Sanders said since investment in housing started to pick up in 2013, the rate of increase in rents had slowed down in Australia, while the annual increase in rents to September has been the lowest since December 1994.

    “The latest 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 figure always a central component of the RBA’s consideration, the latest inflation data would suggest that home buyers can be comfortable in the knowledge that interest rates will remain stable for a sustained period,” Mr Sanders said.