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Australia’s NAB Residential Property Index fell sharply for the second straight quarter in Q3 2018, down 15 to a 7-year low -9 points, and its first negative read since mid-2012, points out Alan Oster, Group Chief Economist at NAB.

Key Quotes

“Sentiment was dragged lower by big falls in NSW and VIC, which offset gains in QLD (the only state reporting a positive result).”

“Confidence also dipped to new lows, pulled down mainly by NSW and VIC where property professionals scaled back their outlook for prices, particularly in VIC where house price falls are now tipped to be much bigger.”

“The boom in Australian housing sales to foreign investors has also run its course, with their share of total sales falling to a 7-year low 8.1% in new markets and a survey low 4.1% in established markets.”

“Property professionals believe that accessing credit is impacting housing markets more now than for a number of years – and in all states – with the level of concern over interest rates now also rising.”