Rental apartment markets tightening: RBA minutes

Rental markets had tightened noticeably in most parts of the country compared with a year earlier, the latest minutes of the Reserve Bank advised. "Rents for units in Melbourne had been the main exception, though even there the pace of decline in rents had eased over prior months," it advised. Members discussed the continuing strength in established housing markets at the July meeting. Nationally, housing prices had increased by more than 10 per cent in the first half of the year; a similar pace of growth had been recorded in other advanced economies, it advised. "Conditions were strong in both capital cities and regional areas, and across different price segments. "Over the first half of the year, there had been increases in prices of units alongside further rises in prices of houses. "Demand over the preceding year had been led by owner-occupiers, although investors had become more active in recent months. "As had been the case for some time, the flow of new listings for sale remained similar to pre-pandemic levels but total listings were much lower, implying that dwellings were being sold at a rapid pace. "Rental markets had also tightened noticeably in most parts of the country compared with a year earlier; rents for units in Melbourne had been the main exception, though even there the pace of decline in rents had eased over prior months." The minutes noted demand for housing finance had strengthened further with stronger growth in credit to both owner-occupiers and investors.