Canberra is a particularly bad black spot in Australia's very dark rental affordability picture, and prices are expected to show significant further growth this year, two new reports say.
Australian Property Monitors rental report said rents for Canberra houses rose at the second-fastest rate in the country so far this year.
At the same time Anglicare ACT general manager Jenny Kitchin said the charity's Rental Affordability Snapshot found Canberra and Queanbeyan was the only major population centre in Australia with no affordable housing for lower-income earners in the private rental market.
''In a very dark picture nationwide, Canberra stands out as particularly bad black spot,'' she said.
''It is clear that many low-income families will be falling into the gap between the private rentals and government-run social housing.''
Ms Kitchin said it would be almost impossible for someone on the minimum wage or government benefits to live in a private rental property in Canberra.
It comes as the latest Australian Property Monitors rental report said rents for Canberra houses rose at the second-fastest rate in the country so far this year.
They were up 2.2 per cent to a median $470 a week in the March quarter, taking annual growth to 6.8 per cent the fastest in the country.
The median rent for units rose 2.4 per cent to $430 in the quarter, and by 6.2 per cent over the year.
It compares with quarterly growth of 2.3per cent for units and 0.1 per cent for houses nationally.
Australian Property Monitors economist Andrew Wilson said Canberra's strong rental growth reflected ongoing high demand and a shortage of available properties.
Renters should prepare for significant growth in rental prices this year, driven by the improving economy and housing shortages.
''However, it is expected that rising rental yields will renew investor interest in the market and may provide some relief for renters in the longer-term,'' Dr Wilson said.
Source: Canberra Times
Wednesday, April 27, 2011
Monday, April 11, 2011
RBA
--But not the Big Four banks! In fact, we learned over the weekend that even though foreign banks accounted for 70% of the $110.7 billion in borrowing from the Fed's Primary Credit Dealer Facility (PCDF), Australia's banks were pretty circumspect with their emergency borrowing.
--Commonwealth Bank borrowed $75 million from the Fed on July 17th, 2008. It borrowed another $25 million on November 12th. But in public statements, the bank said it only borrowed the money to make sure it could. You know, sort of the way you test an emergency key to your front door, to make sure it works when you actually need it.
--Which brings us back to last week's subject: the Reserve Bank of Australia. It won't have to deal with any embarrassing revelations when it meets tomorrow. It can focus on fixing the price of money in Australia. In this respect, anyway, it functions the same way as the U.S. Federal Reserve.
the RBA didn't formally come into existence until 1959 as part of the Reserve Bank Act. Its mission is nominally similar (and unachievable): price stability, full employment, general economic prosperity and welfare. But its board is not, at least at first appearances, entirely beholden to the banking sector.
--In fact, section 17 of the Reserve Bank Act stipulates members of the RBA's board can't be employees, officers, or directors of an authorised deposit-taking institution. This would, again at a casual glance, appear to make the board more independent of the Big Four. The Fed is controlled by its member banks. The Reserve Bank appears to keep Australia's financial industry at an arm's distance.
--Is that really the case? Hmm. We'll see. You may have noticed last week that Donald McGauchie and Warwick McKibbin have not been invited back to serve on the Reserve Bank's board once their terms expire. Both men have been critics of the RBA at times. Jillian Broadbent's term will be extended five years. And later this month the Board will welcome Queensland-based Catherina Tanna, who is currently an executive vice president for BG Group and managing director of QGC.
--Commonwealth Bank borrowed $75 million from the Fed on July 17th, 2008. It borrowed another $25 million on November 12th. But in public statements, the bank said it only borrowed the money to make sure it could. You know, sort of the way you test an emergency key to your front door, to make sure it works when you actually need it.
--Which brings us back to last week's subject: the Reserve Bank of Australia. It won't have to deal with any embarrassing revelations when it meets tomorrow. It can focus on fixing the price of money in Australia. In this respect, anyway, it functions the same way as the U.S. Federal Reserve.
the RBA didn't formally come into existence until 1959 as part of the Reserve Bank Act. Its mission is nominally similar (and unachievable): price stability, full employment, general economic prosperity and welfare. But its board is not, at least at first appearances, entirely beholden to the banking sector.
--In fact, section 17 of the Reserve Bank Act stipulates members of the RBA's board can't be employees, officers, or directors of an authorised deposit-taking institution. This would, again at a casual glance, appear to make the board more independent of the Big Four. The Fed is controlled by its member banks. The Reserve Bank appears to keep Australia's financial industry at an arm's distance.
--Is that really the case? Hmm. We'll see. You may have noticed last week that Donald McGauchie and Warwick McKibbin have not been invited back to serve on the Reserve Bank's board once their terms expire. Both men have been critics of the RBA at times. Jillian Broadbent's term will be extended five years. And later this month the Board will welcome Queensland-based Catherina Tanna, who is currently an executive vice president for BG Group and managing director of QGC.
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