Accordingย to the Real Estate Institute of Australia (REIA), the September 2016 quarter CPI figure continues to be good news for home buyers and renters.
โThe All Groups CPI, increased by 0.7% in the June quarter giving an annual increase of 1.3%. This is marginally higher than the annual increase to the June quarter of 1.0% which was the lowest annual changes since June 1999โ, the President of the REIA Neville Sanders said.
โThe annual changes for the analytical series of trimmed mean and for the weighted median were 1.7% and 1.3% respectively – 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 RBAโs target zone of 2-3% and suggests the continuation of historically low interest rates.โ
โThe Housing Group increased by 1.0% for the quarter and 1.8% for the year to September 2016 with rents increasing by just 0.3% for the September quarter and 0.7% for the year. The major contributors to the increase in the Housing Group were electricity costs and property rates and charges.โ
โFrom 2013, when investment in housing started to pick up, we have seen the rate of increase in rents slow down in Australia. The annual increase in rents to September has been the lowest since December 1994.โ โThe latest CPI 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.โ
โWith the CPI figures always a central component of the RBAโs 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. The cuts in interest rates in May and August have contributed to an improved outlook for existing and prospective home buyersโ, concluded Mr Sanders.