24 Mar RBA welcomes Sydney’s house price fall
For the first time in three years, Sydney’s house and apartment prices fell in the fourth quarter of 2015. According to the Australian Bureau of Statistics, the value of houses fell 2.1%, which is the largest fall in seven years, and the value of apartments, detached dwellings, townhouses and duplexes fell 0.8%.
Meanwhile, prices in all other capital cities rose, led by Canberra (2.8%), Hobart (2.5%), Melbourne and Brisbane (1.6% each) and Adelaide (0.9%).
This week, the Reserve bank of Australia Governor, Glenn Stevens, welcomed the news. “While not the direct objective of the supervisory measures, moderation in house prices in some of the rapidly rising locations is helpful,” said Stevens.
However, although Stevens touted “tighter lending standards” by the banks, a recent survey conducted by the Australian Securities and Investment Commission showed that there was a wide discrepancy for credit criteria and lending standards in the home loan market.
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