THE Real Estate Institute of Queensland (REIQ) has acknowledged this month’s decision by the Reserve Bank of Australia (RBA) to keep the cash rate on hold at 4.1 per cent in April, pending the release of the comprehensive March quarter CPI inflation data on April 30.
REIQ CEO Antonia Mercorella said it was widely expected that the RBA would hold in April, and it would have been a surprise if it had cut the cash rate, however now hopes were mounting for May’s decision.
“After holding in April to gain more confidence inflation is under control, many home buying hopefuls and mortgage holders will be hoping the RBA will consider an additional cut to the cash rate in May,” Ms Mercorella said.
“The latest monthly inflation data confirms that inflation is back in the RBA’s target band, which is encouraging news for consumers and businesses alike.
“Households would welcome additional relief after suffering a significant fall in real disposable income over the last two years.
“There have been signs of sluggishness in the private sector economy, and a rate cut would help improve the outlook for businesses.
“Additional rate cuts are required to lift consumer confidence and borrowing capacity. They also stimulate additional demand and construction of new housing which is sorely needed.”
Ms Mercorella said housing approvals data (the home building pipeline) suggest Queensland and Australia will fall short of national housing targets.
Over the 12 months to the end of January 2025, around 35,800 dwellings were approved for construction in Queensland.
“This is well below the approximately 49,300 dwellings Queensland needs to build each year to do our fair share to meet the national housing target of 1.2 million new homes over five years.”
