Australian property values bottom out as borrowers anticipate end of rate hikes | Kanebridge News
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Australian property values bottom out as borrowers anticipate end of rate hikes

The latest CoreLogic data points to an end to falling housing values across Australian capitals

By KANEBRIDGE NEWS
Mon, May 1, 2023 9:49amGrey Clock 2 min

Housing values appear to have bottomed out, new data from CoreLogic reveals. The latest Home Value Index showed values increased by 0.5 percent over April, after a rise of 0.6 percent in March.

Australian housing values dropped -9.1 percent between May 2022 and February 2023 but are now higher by 1.0 percent over the past three months.

Sydney values continued to increase over April, recording a 1.3 percent rise. This brings values up by 3.0 percent since January this year. All four of Australia’s largest capitals have now seen rises in housing values over the past three months.

CoreLogic research director, Tim Lawless, says prices are most likely on the way up again, which poses potential problems for the market as demand continues to outstrip supply.

“A significant lift in net overseas migration has run headlong into a lack of housing supply,” he said. “While overseas migration would normally have a more direct correlation with rental demand, with vacancy rates holding around one percent in most cities, it’s reasonable to assume more people are fast tracking a purchasing decision simply because they can’t find rental accommodation.”

Recent pressure on the RBA Board to put a hold on further interest rate increases had increased perceptions that they would either stabilise at their current level, or near to it. The uptick in values while interest rates remain at above average levels has a precedent. 

“The last time we saw housing values trending higher through a rising interest rate environment was during the mid-to-late 2000s when the mining boom was underway,” Mr Lawless said. “This period was also characterised by surging net overseas migration that contributed significantly to housing demand.”

The Home Value Index also revealed that low levels of supply were continuing to support housing values as the numbers of newly listed properties, with the four-week trend at around -14 percent below average for this time of year.

The RBA Board will meet tomorrow to discuss the possibility of another increase in the cash rate. Senior economist at PropTrack, Eleanor Creagh said there was a reasonable possibility that a further rise would be put on hold as the full impact of previous increases played out.

“In April, inflation was higher and the labour market remained tight, which saw the board consider raising the cash rate another 25 basis points,” she said. “Instead, it opted to hold the cash rate steady at 3.60 percent, giving the RBA room to pause and assess how economic conditions unfold.

“There is still a way to go in returning inflation to the target range, but with the impact of higher interest rates yet to fully impact household cash flows, and set to do so in months ahead, we’re likely to continue seeing inflation move lower. This gives the RBA leeway for a continued period of patience in May.”

 



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Designing Dreams: David Charette’s fascinating Spaces for Children’s Adventures

David Charette has teamed up with CIRCU Magical Furniture to design spaces that capture the essence of childhood wonder.

Tue, May 21, 2024 4 min

This collaboration between David Charette, founder and principal of Britto Charette, and CIRCU Magical Furniture aims to stimulate the imaginations of children, encouraging them to invent their own tales of adventure. Drawing on his extensive travels, Charette believes that journeying through different cultures can spark creativity in young minds.

His latest venture uses a mix of luxury elements and magical themes, incorporating products from CIRCU, Covet House, and other vendors to create unique, enchanting children’s rooms. These spaces are designed to reflect the excitement and mystery of exploring new worlds.

The Sleeping are:

David Charette has transformed a Montreal residence into a magical sleeping area where time seems to pause, and adventures await. Known for its long, cold winters and short days, Montreal served as the perfect backdrop for Charette’s vision of a space that remains warm and bright throughout the year.

Central to the design is the concept of “light and bright,” brought to life using de Gournay‘s hand-painted wall coverings in fresh mint, decorated with flying butterflies. These elements beautifully complement the original shapes of the KOKET Nymph Wall Lamp and the organic curves of the CIRCU Tristen Bed.

Charette’s attachment to the Tristen Bed stems not only from its youthful appeal but also from its ergonomic design, which makes it easy for children to climb in and out of, enhancing both its functionality and charm.

The Bed:

Charette paired the modern lines of the bed with the unique design of the Boca do Lobo Wave Nightstand and the funky style of Delightfull’s Billy Table Lamp. By blending these contemporary pieces with the classic elements in the decor of this luxury kids’ room, Charette has crafted a unique space that breathes a natural breeze of inspiration into any child’s environment.

This combination not only adds aesthetic appeal but also stimulates the imagination, making the room a perfect sanctuary for creativity and dreams.

The seating area:

The room also includes a cozy seating area perfect for young readers. Centred around the CIRCU Dainty Armchair, this space is tailored for kids, with the chair’s delicate structure and elegant design enhancing the room’s charm. Its pink velvet upholstery adds a vibrant pop of color, enriching the room’s palette. To distinctly separate this reading corner from the rest of the sleeping area, Charette chose the Boca Do Lobo Gold Folding Screen from Covet House, which not only adds an element of privacy but also contributes a touch of sophistication to the space.

The Play and Study area:

David Charette aimed to create a space with an “Out of Africa” vibe to spark a child’s imagination and inspire a passion for lifelong adventures and travels. Drawing from fond memories of camping during his own childhood, Charette incorporated a Teepee Tent into the room’s design, allowing children to feel as they are camping in a forest right within their own bedroom.

This nature-inspired theme is beautifully complemented by the Fornasetti wall coverings from Cole & Son and the Filigree Cricket Wall Lamp, which are insect-shaped sconces by Boca do Lobo.

Adding to the ambiance, Charette notes, “The clouds on the ceiling further the idea of camping (in this case “glamping”) and dreaming, and the Circu Cloud Suspension lamps add to the dreamy camping vibe.”

To maintain this adventurous theme, Charette selected the CIRCU NODO Suspension Chair. It not only brings a hint of outdoor fun indoors with an elegant flair but also offers a comfy spot for kids to unwind and lose themselves in their favorite stories.

In his design, David Charette, of Britto Charette, focused on enhancing the sense of freedom and sparking children’s imaginations in their own space. He chose one of his favorite pieces from CIRCU, the Sky Desk, for its playful design and inspirational form. Shaped like an airplane, this desk not only becomes the central feature of playtime but also transforms homework into an exciting adventure. The unique design aims to captivate and motivate young minds, turning everyday tasks into a flight of imagination.

David Charette designed this luxury children’s room with the hope that it would inspire children to dream, play, and develop a deep respect for nature as they embark on their own adventures.

He crafted the room to be “transitional,” capable of evolving with a child from toddler years into adolescence. This design approach not only aims to create a lasting, imaginative space for children but also to show parents the value of investing in unique, high-quality pieces like those from Circu. These carefully chosen items stand out from mass-produced children’s designs, offering both aesthetic appeal and long-term utility.

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