The June 2016 quarter CPI figure is good news for home buyers and renters, according to the Real Estate Institute of Australia.REIA President Neville Sanders said: “Overall, the All Groups CPI, increased by 0.4% in the June quarter giving an annual increase of 1.0% - the lowest annual changes since June 1999. These figures are well below the RBA’s target zone of 2-3%.
"The annual changes for the analytical series of trimmed mean and for the weighted median were 1.7% and 1.3% respectively. This is the lowest annual increase since the two series were introduced in June 2003 and should provide scope for an interest rate cut. The Housing Group increased by 0.4% for the quarter and 1.3% for the year to June 2016 with rents increasing by just 0.2% for the June quarter and 0.7% for the year."
Mr Sanders said that from 2013, when investment in housing started to pick up, the rate of increase in rents had slowed down in Australia. He said the annual increase in rents to June has been the lowest since December 1994.
“The latest CPI figures provide further evidence that the current taxation arrangements which provide many Australians with the opportunity to invest in property adds to the housing supply and keep rents lower than they would otherwise be," he said.