Friday, November 30, 2012

November Cairnswatch

With the 2012 year closing fast the penultimate edition of Cairnswatch from Rick Carr at HTW was released today.

There is no significant change from recent trends  although I thought Rick made an interesting comment in the overview:
On the plus side are continuing gains in airport arrivals, building approvals and
employment. However the downside is an extremely tight rental housing market, which
if not resolved will become a constraint on future economic growth.
Most media and political comment to date has perceived tight rental markets and higher rents as a positive set to drive housing construction growth. This is not a given however and as previously noted places such as Perth have maintained much tighter rental markets for a year or two now without having induced substantial building activity or stronger property prices.

Loose Change pointed out previously that Cairns is well represented in rental suburbs and a dysfunctional rental housing market may not turn out to be all positive.  Credit data today from ABS was weak reviving speculation of further interest rate cuts.

Also noted this month in Cairnswatch was the special topic of mortgagee and receiver sales which fits quite well with much previous comment at Loose Change!

No comments:

Post a Comment