Housing Markets

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<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">The timely indicators of local economic activity have generally been improving in recent months. Business conditions and confidence have been on a rising trend. Jobs growth has been strong and forward-looking indicators suggest that hiring intentions have been improving. Mining investment has been trending lower, but growth is rebalancing towards housing and the services sectors. As non-mining sectors are more labour-intensive than mining, this is creating jobs, even if it is not a big support for business investment. </span></p>
<p><span style="line-height: 1.3em;">These local developments have helped to make the RBA more comfortable with its policy setting over the past month or so. The lower AUD is also now providing more support to Australia’s rebalancing act. The 15% fall in the AUD trade-weighted index over the past year means the local currency is now close to a level the RBA deems to be ‘fair value’. </span></p>
<p><span style="line-height: 1.3em;"><br></span><span style="line-height: 1.3em;">However, offshore risks are brewing. Falls in China’s stock prices, adjustments to the RMB’s fixing mechanism and weaker Chinese indicators have seen increased market volatility as global investors become more concerned about China’s growth outlook. Commodity prices have fallen, with oil and copper prices declining to new six-year lows in recent weeks. Markets have also sold off on concerns about what a rise in the Federal Reserve’s policy rate before the end of the year could mean for emerging economy growth. </span></p>
<p><span style="line-height: 1.3em;"><br></span><span style="line-height: 1.3em;">These global events are likely to be the focus of the RBA’s meeting next week. Importantly, though, the RBA’s recent statements have been flagging that an increase in market volatility was expected as the Fed got closer to lift-off. Weak commodity prices also do little to change the already weak outlook for new mining investment. </span></p>
<p><span style="line-height: 1.3em;">In next week’s statement we expect the RBA to note that it is too early to know the impact of recent market volatility on global growth. We expect the RBA’s cash rate to be held steady at 2.00% next week and the statement to contain little guidance about the likely future direction of policy. </span></p>
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<p><span>Local economic indicators have been positive </span></p>
<p><span>Australia’s rebalancing act is running its course. A strong upswing in housing prices and residential construction is now combining with the next stage of the rebalancing act: an upswing in the services sectors. The clearest sign of the on-going rebalancing of growth is the upswing in jobs growth, which is being driven by employment in the household and business services sectors (Chart 1). As a result, the unemployment rate has stabilised at around 6-6.25% over the past year. </span></p>
<p><span>Surveys of business conditions also show that growth is shifting away from the mining to non-mining sectors (Chart 2). We expect the services sector to be the next driver of growth (see </span><span>Australia’s next growth driver: The rise of the services sector</span><span>, 10 July 2015). Recent falls in the AUD are helping to support the rebalancing act. Indeed, the 15% fall in the AUD trade-weighted index over the past year has brought the currency to a level that is making the RBA more comfortable (see </span><span>Downunder Digest: Lower AUD is helping Australia's rebalancing act</span><span>, 21 August 2015). </span></p>
<p><span>China’s economic indicators have weakened </span></p>
<p><span>Although local conditions have been improving, timely indicators suggest that China’s growth has continued to slow. The Caixin manufacturing PMI fell to its lowest level since 2009 in August (Chart 3). </span></p>
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<p><span>Matching the weakness in manufacturing activity has been a further slowdown in investment in the manufacturing industry (Chart 4). </span></p>
<p><span>Although housing sales and prices have been lifting in recent months, this is yet to translate into a pick-up in housing investment, which is growing at its slowest pace since early 2009. </span></p>
<p><span>Growth is getting support from better conditions in non-manufacturing industries and continued solid growth in infrastructure investment, but growth in overall fixed asset investment has slowed.</span></p>
<p><span>Weaker growth indicators combined with recent falls in stock prices and changes in the way the People’s Bank of China manages China’s currency have all contributed to a marked increase in financial market volatility recently (discussed further below). China’s authorities have responded to recent concerns about weaker growth with further cuts to interest rates and the reserve requirement ratio. More investment in infrastructure is also expected to be a key support for growth. For more on HSBC’s view on China see HSBC China Economics and FX Strategy, 25 August 2015.</span></p>
<p><span>China and an expected Fed move are driving market volatility </span></p>
<p><span>Together, developments in China and concerns about the impact of a possible increase in the Federal Reserve’s policy rate, expected before the end of the year, have contributed to a significant increase in financial market volatility in recent weeks. Commodity prices have fallen particularly sharply, with copper and oil prices both falling to six-year lows (Chart 5). Iron ore prices have held up better, having fallen sharply earlier in the year. </span></p>
<p><span>Global equity markets have also seen sharp falls and a substantial increase in volatility. Western equity markets have been volatile, as investors assess the possible impact on global growth of weaker growth in emerging economies, which are under pressure from both falling commodity prices and an expected rise in US interest rates. Asia’s markets have been particularly volatile, as concerns about China’s growth and the Federal Reserve weigh on the region (Chart 6). </span></p>
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<p><span>The RBA’s tactics and commentary </span></p>
<p><span>We expect the RBA’s meeting to be uneventful, with the central bank likely to remain comfortable that the economy is continuing to grow, that growth is creating sufficient jobs to keep the unemployment rate steady, and that the AUD is now at a level where it is helping to support the rebalancing of growth. The RBA is likely to acknowledge the recent increase in volatility in financial markets; however, the RBA is also to note that it is too early to determine the impact of these developments on the outlook for global growth. </span></p>
<p><span>We remain of the view that the most likely course for Australia’s monetary policy is that the cash rate remains at its current level in coming quarters. This is particularly the case as the AUD is now providing more support to local growth than previously. However, it does seem likely that the recent developments, particularly the fall in commodity prices, do increase the downside risks to Australia’s growth and, therefore, increase the possibilities that further monetary policy easing may be needed. </span></p>
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<p><span><em><span><a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. </span></em></span></p>
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jchancellor-FAypfDUnLy

Housing investment growing slowest since early 2009: HSBC's Paul Bloxham

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<div>The ONS released its latest data in the UK which showed that inflation or CPI has dug in obdurately at zero year-on-year (a 0.4 reading drops off next month too, so we could be heading negative), suggesting that interest rate hikes are as far as way as they ever were, even after seven years at the effective zero lower bound.</div>
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<div>The latest house prices indices from the ONS for July 2015 showed prices rising over the past year in England (+5.6%) with the mix-adjusted average house price in England rising to an all-<span>time high of <span>£299,000.</span></span>
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<div><span><span><br>House prices in England have busted through record highs and are now +19.1% from their pre-downturn peak of January 2008 in seasonally adjusted terms.</span></span></div>
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<div><span>By comparison growth over the past year has been flat in Wales (+0.3%) and negative in Scotland (-1.3%), while house prices in Northern Ireland remain a whopping -42.3% below their crazy August 2007 peak levels in seasonally adjusted terms. Woosah.</span></div>
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<span>London house prices continued to power on to a new high of </span><span>£525,000 (not seasonally adjusted), while annual price gains have been driven largely by the areas immediately surrounding London, namely the East (+8.3%) and the South East (+6.7%) of England. </span>
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<div>In short, since the January 2008 peak if you've owned property in London (+46.2% in seasonally adjusted terms), or in nearby cities such as Cambridge or Oxford, then you have continued to do exceptionally well. </div>
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<div>House prices in seasonally adjusted terms are also up reasonably strongly in the areas surrounding London such as the South East (+20.0%) and East (+18.8%) since the preceding January 2008 peak.</div>
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<div>Elsewhere prices are now rising again but in real terms are generally well below previous peaks, although in nominal terms 7 of the 9 regions have finally recovered to hit new highs.</div>
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<div><span>At a national level the UK house price index sits at 216.9 which is +16.9% higher than the pre-downturn peak of 185.5 seen in January 2008, with London and the South East accounting for the bulk of the increase. </span></div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

England house prices power on: Pete Wargent

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<h2>EXPERT OBSERVER</h2>

<p>Capital city housing markets have surged towards years-end with robust buyer and seller activity clearing any doubts of a sustained post coronavirus shutdown recovery. Housing markets have rebounded quickly following the easing of local coronavirus restrictions with the clear prospect of the current generally strong market conditions continuing through 2021.</p>

<p><strong>AUCTION MARKETS</strong></p>

<p>Average weekend home auction clearance rates continued to rise over November In Sydney, Melbourne and Brisbane with boom-time results maintained In Adelaide and Canberra The Melbourne auction market clearly reported the sharpest monthly increase In clearance rates and auction listings over the month, reflecting the impact of the easing of local coronavirus restrictions. Auction numbers also Increased significantly in each capital over the month. Clearance rates and auction numbers over November were generally similar to those recorded over the same period In 2019, although Melbourne listings remained significantly lower.</p>

<p><strong>NEWLY REPORTED LISTINGS</strong></p>

<p>Real-time Indicators of housing market activity supported November’s generally strong auction market performances The National Daily New Listings Index peaked at 110.35 over November before the seasonal constraints and distractions of the upcoming summer holiday period produced the unusual end-of-year decline in activity - particularly in auction listings. New listings however remained higher than reported over the same period last year. New listings fell in all capitals over the month reflecting the usual seasonal impact of the approaching end of year market shut down. Decline levels were reasonably consistent amongst the capitals. Melbourne again reported the highest number of new listings over the month - 8.8% higher than the Sydney total.</p>

<p><strong>NEWLY REPORTED SALES</strong></p>

<p>Newly reported home sales continued to rise over November in all capitals except Adelaide, with rebounding Melbourne market again the standout - Increasing sharply by 70% over the month. Although Sydney again reported the highest number of average weekly newly reported sales over the month, Melbourne has closed the gap significantly compared to the previous month and now lower over November by just 16.2%.</p>

<p><strong>HOUSE AND UNIT ASKING PRICES</strong></p>

<p>Sydney reported the highest Increase In average median daily asking prices for houses over November - up sharply by 3.5%. Sydney maintained Its most expensive position with the highest average median asking price over November at $1,154,216 and significantly ahead of the next highest Melbourne at $847,569.</p>

<p><strong>Dr Andrew Wilson </strong><em>is the Chief Economist at Archistar</em></p>
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Capital city housing markets have surged towards years-end with robust buyer and seller activity clearing any doubts of a sustained post coronavirus shutdown recovery.

jordan_55689

Australian housing markets strengthening till years end: Archistar's Dr Andrew Wilson

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<p>Fitch Ratings does not expect a "sharp or subdued" correction in the housing market because economic growth and unemployment will remain "benign."</p>
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<p>Fitch forecasts 2.7 per cent economic growth, 5.5 per cent unemployment and reliance on commodity exports as a possible source of volatility.</p>
<p>"High residential property prices and borrower indebtedness could also cause economic stress," the report concludes.</p>
<p>As part of a housing "stress test", the global credit rating agency recently calculated that the big four would suffer $24 billion in losses if house prices fell 43 per cent and defaults hit 13 per cent.</p>
<p>However, recoveries from lenders' mortgage insurers would cut the loss to about $19 billion.</p>
<p>It suggested the $1.3 trillion mortgage books of Australia's big four banks could withstand an Ireland-style correction in property prices but the lenders' ability to deal with second-order impacts remained uncertain.</p>
<p>"CBA would experience the largest losses under our analysis, followed by Westpac, reflecting these banks' larger exposures to Australian mortgages than ANZ and NAB," the agency said.</p>
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<p>Fitch's forecast for Australian economic growth came as the Reserve Bank of Australia warned that high domestic debt makes households more sensitive to changes in income and interest rates.</p>
<p>It estimated households should be able to afford a mortgage rate "well more than 2 per cent higher than it is currently".</p>
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<p>The most probable source of an economic shock would be external, Fitch suggests.</p>
<p data-gtm-vis-recent-on-screen-7770372_137="45192" data-gtm-vis-first-on-screen-7770372_137="45192" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">"A rapid increase in the unemployment rate remains the most likely driver of a significant housing market correction, although sharply higher interest rates would also pressure some borrowers – given the level of household debt."</p>
<p>The agency said another risk was the rollover of $480 billion of interest-only loans over the next three years.</p>
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<div>Fitch foresees a further tightening of underwriting standards, given the increased scrutiny of the Hayne royal commission, which could affect the housing market. </div>
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<p>"This will probably result in a further decline in the maximum amount many borrowers can obtain from a bank, and could have an adverse impact on house prices as a result."</p>
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j.ballantyne1990-6AQqhLzZaK

Fitch doesn't expect sharp property correction

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<p><strong><span lang="EN-US">EXPERT OBSERVATON</span></strong></p>
<p><span lang="EN-US">Housing finance approvals came in </span><span style="font-size: 12.16px;">better than expected for April but are showing clearer signs of a turn lower. The total value of new loans fell 4.8% in the month, a weak result but better than expected given disruptions from COVID-19 – we had been looking for a 10% pull back.</span></p>
<p><span lang="EN-US">The detail showed similar sized declines across the value of owner occupier and investor approvals (–5% and –4.2% respectively) and in the number of owner occupier approvals (–4.4%mth). The latter is now down on a year ago but loans in value terms remain higher (reflecting the rebound in prices over the last year).</span></p>
<p><span lang="EN-US">The ABS reported that housing loan approvals largely reflected applications submitted prior to COVID restrictions being introduced in March.</span></p>
<p><span lang="EN-US">Results were very uneven by state, perhaps reflecting variations in lags between application and approval. Qld and WA saw much sharper pull backs (–22% and –24% respectively) compared to the milder decline in SA (–4.1%) and NSW (–2.4%), and a 4.5% gain in Vic that looks particularly out of step.</span></p>
<p><span lang="EN-US">The lending figures also include non housing loans which are worth a mention. In particular, a steep fall in personal loan approvals (–24.8%) is more clearly directly related to COVID impacts. The detail here shows a slump in vehicle loans in line with the abrupt drop in sales and a very sharp decline in travel-related loans. Note that these loans have much shorter processing times than housing loans.</span></p>
<p><span lang="EN-US">Overall, the housing finance data is yet to fully reflect the Coronavirus disruptions that hit the market through April-May. Many of these may have resulted in borrowers that had secured loans being unable to transact – as auctions and open homes were cancelled, and as properties were withdrawn. As such housing finance approvals may miss some of the extent of the disruption. However, the shock will clearly impact the flow of new applications. This may be taking longer to move through the pipeline, but a sharp drop off still looks likely in the months ahead.</span></p>
<p><em><span lang="EN-US"><strong>Matthew Hassan</strong> is a senior economist with Westpac.</span></em></p>
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Matthew_Hassan-HHWHptmrw4

A clearer but mild turn for housing finance: Matthew Hassan

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<p>Not every Australian housing market has performed the same way since the onset of the COVID-19 pandemic.</p>
<p>The latest CoreLogic Home Value Index results revealed that since March, Melbourne property values fell 3.5%. Meanwhile, the ACT dwelling market reached a record high.</p>
<p>From June to July, the rate of decline eased across Perth from -1.1% to -0.6%, but deepened across Melbourne and Sydney.</p>
<p><img src="https://www.urban.com.au/images/2020/8/6/Cumulative%20CL.JPG" alt=""></p>
<p>The chart above shows the varied trajectories of capital city markets from the end of March.</p>
<p>The end of March is a good place for dating the ‘start’ of the COVID-19 pandemic in Australia, because Australia recorded its 100th case of COVID-19 on the 14th of the month, and the 25th of March saw the national rollout of stage 2 restrictions, which created much of the economic shock as business activity slowed.</p>
<p>Melbourne has so far seen the largest cumulative declines in property values since March (3.5%). This was led by a 5.2% decline across the Inner East region.</p>
<p>As has been explored in recent weeks, the steeper decline across the Melbourne market is two-fold. Cyclically, Melbourne property is subject to more volatile growth rates, and is also presenting strong declines off the back of very high growth rates through the previous upswing.</p>
<p>Structurally, there has been an enormous demand shock to the Melbourne property market with the closure of international borders, where Melbourne previously had the highest level of net overseas migration of the capital city markets. This is similar to the Sydney housing market, which received the second highest volume of net interstate migrants over 2018-19.</p>
<p>Victoria has also seen the largest decline in payroll jobs of the states and territories, according to ABS data. Conversely, the ACT has seen property value increases of 1.3% since March. While the performance of the ACT market may seem like an anomaly, the ACT dwelling market is one of the few markets performing as may be expected amid the record low cash rate setting.</p>
<p>RBA research has noted that reductions in the cash rate typically increase property values over time, because debt becomes cheaper and purchasing capacity increases.</p>
<p>However, it is still striking that 70% of food and accommodation employers reported a reduction in staff hours. Food and accommodation employs about 8% of Australians, or about 1.2 million people. This is where a more granular view of employment data can highlight risks to the property market.</p>
<p>The detailed quarterly survey data provides insight into what industry residents work in, at the SA4 level. The February edition suggests that most food and accommodation workers are highly concentrated in Sydney’s Inner West, followed by the Sunshine Coast and the Coffs Harbour-Grafton region.</p>
<p>This market has likely been buoyed by the relative stability in employment across sectors where workers are on higher incomes, and are more likely to be home owners or prospective buyers. For example, ABS payroll data shows the number of jobs across the financial and insurance industry in the ACT has actually increased 0.7% since the start of the pandemic.</p>
<p>A ‘two tiered’ state of the labour market is highlighted by the fact the ACT accommodation and food services sector has seen the largest rate of decline of the states and territories. This industry is more likely to be comprised of renters, and rental values have fallen half a percent across the ACT since March, with larger falls across the unit sector (-1.0%). Smaller housing markets have seen better capital growth results since March.</p>
<p>Adelaide is a relatively steady market that has traditionally not seen volatile movements in response to negative economic shocks. This may be partly to do with the relatively low level of investment activity across the market. CoreLogic estimates that the portion of dwellings across Adelaide that were owned by investors as of July 2020 was 28.9%, compared with 34.5% nationally. While Adelaide has seen modest growth during the pandemic, this has not traditionally been a market with strong capital growth returns.</p>
<p>Annualised growth across Adelaide dwellings over the past 10 years was 1.3%, compared with 3.0% across the combined capital cities market. It is also worth noting that while cumulative price changes show 4 of the 8 capital city markets have not declined in value since March, almost all markets are showing a slowdown in growth rates. This suggests that, as with past downturns, most housing markets will be subject to a downswing phase.</p>
<p><strong> What to expect going forward</strong></p>
<p>Looking forward, there are a variety of factors that will influence the outlook for home values. Of immediate concern is the steepening curve of the virus in Victoria.</p>
<p>Considering Victoria accounts for around one quarter of the nation’s economy, the stage four lockdown has already dampened both consumer and business sentiment nationally and the interruption to economic activity will deepen and lengthen Australia’s recession.</p>
<p>Cities where labour markets are more impacted are also likely to under-perform, as will those with more significant exposure to overseas migration as a source of housing demand.</p>
<p>As federal government fiscal support moves from around $18 billion per month to around $3 billion from October, housing market conditions will be tested more broadly; this is when we are likely to see a rise in the number of households facing financial distress and a lift in urgent sales.</p>
<p>The expiry of mortgage repayment holidays is another downside factor for the market. Pre-COVID, mortgage arrears remained around 1% of the mortgage book, but with unemployment expected to reach 10%, along with less fiscal support and an expectation that mortgagors taking a repayment holiday will need to face up to their debts by April next year, it’s reasonable to expect a sharp rise in mortgage arrears which could see a lift in distressed properties hitting the market. The RBA has previously noted for every 1 per cent rise in the unemployment rate, 90 day mortgage arrears generally increase by 80 basis points.</p>
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<p>If unemployment rises to 10%, that implies a 90 day mortgage arrears rate around 5%. Arguably, this may be an overstatement, considering weak labour market conditions are skewed to more casualised workers who tend to be renters rather than home owners.</p>
<p>The outlook for both the economy and housing markets remains extremely uncertain, but risk remains skewed to the downside.</p>
<p><strong>ELIZA OWEN </strong><em>is the</em><em> Head of Research Australia at CoreLogic</em></p>
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pchatterjee-seVgoiQgz5

Why capital cities performed differently amid COVID-19: CoreLogic's Eliza Owen

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<p><span>A Minister for Cities and the Built Environment will help Australia make the most of its productivity powerhouses, says the Green Building Council of Australia (GBCA).</span></p>
<p><span>The Prime Minister Malcolm Turnbull has appointed South Australian Jamie Briggs as Australia’s first Minister for Cities and the Built Environment.</span></p>
<p><span>“This appointment recognises not only the importance of our cities as the engine room of the nation’s productivity and prosperity, but also the central role the built environment plays in tackling many of Australia’s greatest challenges," the GBCA’s chief executive officer, Romilly Madew said.</span></p>
<p><span>“Minister Briggs’ long-awaited appointment will enable us to better tackle the challenges we face – challenges such as climate change, population growth, ageing demographics, congestion, housing affordability, liveability and social inclusion."</span></p>
<p><span>The Property Council of Australia chief executive Ken Morrison warmly welcomed Malcolm Turnbull as "perhaps our most urbanist Prime Minister ever."</span></p>
<p><span>"He has lost no time in placing cities firmly on the federal agenda," Mr Morrison said.</span></p>
<p><span>"Make no mistake about it, this is a key economic appointment.</span></p>
<p><span>"The move recognises that in the most urbanised country in the world Australia's productivity challenges are going to be need to be met in our cities.</span></p>
<p><span>"With the property industry accounting for one ninth of Australia's GDP and employing 1.1 million people - more than mining and manufacturing combined - there is an increasing urban dimension to the economy.</span></p>
<p><span>"Jamie Briggs is a smart appointment as the new Cities Minister given his record in securing the government's $50 billion infrastructure commitment in last year's budget.</span></p>
<p><span>"The move mirrors one already made by the Opposition last year in appointing Anthony Albanese as shadow cities minister, and it is very pleasing to now see a bipartisan approach to the importance of this issue."</span></p>
<p><span>The Property Council also congratulated Scott Morrison - a former head of research for the organisation in the 1990s - on his appointment as federal Treasurer.</span></p>
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Jamie Briggs appointed Australia's first minister for Cities and Built Environment

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<p><span>In spite of high growth in Sydney and Melbourne, growth in Australia as a whole is significantly lower than other housing markets around the world – according to the latest Knight Frank Global House Price Index.</span></p>
<p><span>Onthehouse.com.au data reveals that the annual median capital growth rate for Australia’s houses and units was just 5.7% and 5.6% </span><span style="line-height: 1.3em;">respectively. It is likely that nationally, houses and units are similar in their growth rate because there are more units in dense, high growth areas.</span></p>
<p><span>The two significant resource markets – Darwin and Perth – have showed poor performance over the last year. Houses in Darwin fell -3.74% in the last year, from $575,000 in May 2014 to $554,000 in May 2015.</span></p>
<p><span>The deepening downward trend for these markets can be seen below.</span></p>
<p><a href="/images/2015/07/24/G3_Resource_State_Trends.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/07/24/G3_Resource_State_Trends.jpg" alt=""></p>
<p><span>The differing trends represent the persistent, two tiered housing market that makes growth across the board seem stable. The Iron Ore price remains low at just US$60 per dry metric tonne, a commodity which averaged over US$100 per unit this time last year. Little has been done to create sustainable employment following low resource prices, and the end of the construction phase in the mining boom.</span></p>
<p><span>It is therefore misleading to look at data in such aggregation. The two tiered housing market makes it difficult for policy makers and Reserve Bank to influence housing growth.</span></p>
<p><span>With a boom on the south east coast that sets a higher deposit hurdle, and a bust in the resource states that has an unclear future, the state of the Australian housing market seems dismal. However, sustainable house and unit growth are an indicator of the strength of the economy. Though we present a summary of statistics by city metropolitan regions, there are suburbs with idiosyncrasies that make them a promising for investment. These include diverse employment opportunities, planning regulation, quality properties and affordability. Exploring such places outside of the major cities could present a more accessible growth or high yield strategy.</span></p>
<p><span><em><span>ELIZA OWEN</span> is a market analyst for <a href="https://www.onthehouse.com.au/" target="_blank">Onthehouse.com.au</a>.</em></span></p>
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Australia's persistent two tiered housing market: Onthehouse's Eliza Owen

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<p><span>Sydney remains the only capital city where units had a lower level of resales at </span>a loss than houses over the June 2015 quarter, according to Core Logic RP Data's latest Pain &amp; Gain report.</p>
<p>The report found during the quarter 7.7% of houses and 12.6% of units were resold for less than their previous purchase price.</p>
<p>In the capital cities, 5% of houses and 8.4% of units were resold at a loss. Regional houses and units figures are 12.5% and 23.8% respectively.<span style="line-height: 1.3em;"> </span></p>
<p><a href="/images/2015/09/29/Screen%20Shot%202015-09-29%20at%2012.18.01%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
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