Reserve Bank Board Members observed that residential construction appeared to have plateaued, with dwelling investment largely unchanged in the June quarter. The pipeline of work already approved or underway was expected to continue supporting dwelling investment around current levels over the subsequent year or so; the peak of apartment completions was expected to occur during this period. At the current level of dwelling investment, the growth of the housing stock was expected to outstrip that of the population, as it had done in the preceding few years.
Financial market pricing continued to indicate that the cash rate was expected to remain unchanged during the remainder of 2017, although expectations of a rate rise in 2018 had increased and a 25 basis point rise was fully priced in for the second half of 2018.
Don’t delay reviewing your own financial circumstances, ensuring you take full advantage of current favourable economic conditions.