1 00:00:03,990 --> 00:00:06,870 Sean Aylmer: Welcome to the Fear and Greed Business Interview. I'm Sean Aylmer. 2 00:00:07,200 --> 00:00:09,510 Sean Aylmer: Everyone has a view on the housing market from Reserve 3 00:00:09,510 --> 00:00:12,750 Sean Aylmer: Bank Governor Michele Bullock through to economists and homeowners. Of 4 00:00:12,750 --> 00:00:16,859 Sean Aylmer: course, we know interest rates are relatively high and house 5 00:00:16,859 --> 00:00:19,380 Sean Aylmer: prices certainly have bottomed. They had bottom last year, in 6 00:00:19,380 --> 00:00:23,640 Sean Aylmer: fact. But, since then, there's been quite a remarkable turnaround. 7 00:00:23,640 --> 00:00:27,510 Sean Aylmer: Domain, last week, released its September quarter House Price Report. 8 00:00:27,719 --> 00:00:29,580 Sean Aylmer: So, I thought it would be a good time to 9 00:00:29,580 --> 00:00:31,409 Sean Aylmer: check in on what we are likely to see over 10 00:00:31,410 --> 00:00:35,129 Sean Aylmer: the next 12 months or so. Dr. Nicola Powell is Domain's Chief 11 00:00:35,129 --> 00:00:38,280 Sean Aylmer: of Research and Economics. Welcome back to Fear and Greed. Nicola, 12 00:00:38,640 --> 00:00:40,080 Dr. Nicola Powell: Thank you for having me on again. 13 00:00:40,590 --> 00:00:44,190 Sean Aylmer: So, what's the September quarter House Price Report showing? 14 00:00:45,150 --> 00:00:49,049 Dr. Nicola Powell: Look, I think it's probably going to quite surprise listeners, 15 00:00:49,049 --> 00:00:53,519 Dr. Nicola Powell: but we are almost fully recovered from the 2022 downturn. 16 00:00:53,519 --> 00:00:56,340 Dr. Nicola Powell: When you look at where house and unit prices are 17 00:00:56,340 --> 00:01:00,540 Dr. Nicola Powell: sitting now compared to their respective peaks across the combined 18 00:01:00,540 --> 00:01:04,800 Dr. Nicola Powell: capitals, we only need $ 2, 000 for house prices and $ 5, 19 00:01:04,800 --> 00:01:08,429 Dr. Nicola Powell: 000 extra for unit prices to be at a new 20 00:01:08,429 --> 00:01:11,189 Dr. Nicola Powell: record high. And we are actually of the view, by 21 00:01:11,190 --> 00:01:13,800 Dr. Nicola Powell: the end of this calendar year, we are likely to 22 00:01:13,800 --> 00:01:16,050 Dr. Nicola Powell: achieve that across our combined capitals. 23 00:01:16,530 --> 00:01:19,050 Sean Aylmer: I think that's quite extraordinary because we may even have 24 00:01:19,500 --> 00:01:23,159 Sean Aylmer: another rate rise in the offing next week when the 25 00:01:23,160 --> 00:01:27,539 Sean Aylmer: Reserve Bank meets. Why are we seeing this incredible bounce 26 00:01:28,109 --> 00:01:30,390 Sean Aylmer: given the economic circumstances? 27 00:01:30,569 --> 00:01:35,700 Dr. Nicola Powell: Yeah. Look, I think it is surprising given the inflation is stubbornly high 28 00:01:35,910 --> 00:01:38,010 Dr. Nicola Powell: and we've seen such a change in the cost of 29 00:01:38,010 --> 00:01:41,280 Dr. Nicola Powell: actually holding debt, and that impact on borrowing capacity. We've 30 00:01:41,280 --> 00:01:46,048 Dr. Nicola Powell: seen borrowing capacities slashed by 30% based upon how high 31 00:01:46,049 --> 00:01:48,870 Dr. Nicola Powell: interest rates have gone over the last 12 to 18 32 00:01:48,870 --> 00:01:51,780 Dr. Nicola Powell: months. Look, I think that there is a variety of 33 00:01:51,780 --> 00:01:54,690 Dr. Nicola Powell: different reasons why we've seen our markets recover and that 34 00:01:54,690 --> 00:01:57,450 Dr. Nicola Powell: initially commenced because of a lack of supply. And we 35 00:01:57,450 --> 00:02:01,020 Dr. Nicola Powell: saw, particularly in Sydney, move into a recovery much sooner 36 00:02:01,020 --> 00:02:03,990 Dr. Nicola Powell: than our other capital cities. And that was because sellers 37 00:02:03,990 --> 00:02:05,699 Dr. Nicola Powell: sat on the sideline. And this is what I love 38 00:02:05,699 --> 00:02:09,510 Dr. Nicola Powell: about our housing markets, that behavioral economic side where there 39 00:02:09,510 --> 00:02:12,990 Dr. Nicola Powell: is this emotional aspect that isn't spoken enough about in 40 00:02:12,990 --> 00:02:15,869 Dr. Nicola Powell: the housing market. And that is you are not going 41 00:02:15,870 --> 00:02:19,138 Dr. Nicola Powell: to sell your biggest asset if you think that conditions 42 00:02:19,139 --> 00:02:21,480 Dr. Nicola Powell: do not suit selling or you think you're not going 43 00:02:21,480 --> 00:02:24,000 Dr. Nicola Powell: to get the price that you think your home is 44 00:02:24,000 --> 00:02:26,880 Dr. Nicola Powell: worth. And that's what we see during all downturns, is 45 00:02:26,880 --> 00:02:30,209 Dr. Nicola Powell: sellers pullback. And that in itself helps to stabilize price, 46 00:02:30,210 --> 00:02:33,240 Dr. Nicola Powell: and then you eventually start to get increased competition and 47 00:02:33,240 --> 00:02:36,240 Dr. Nicola Powell: that just starts to drive prices up. And that is exactly what 48 00:02:36,240 --> 00:02:39,270 Dr. Nicola Powell: we saw earlier this year. And I would probably say that we 49 00:02:39,270 --> 00:02:42,630 Dr. Nicola Powell: saw a bit of a stronger pullback from sellers than 50 00:02:42,630 --> 00:02:46,290 Dr. Nicola Powell: what we would tend to see during a downturn. And 51 00:02:46,290 --> 00:02:48,930 Dr. Nicola Powell: so, I think actually that movement into recovery was pretty 52 00:02:48,930 --> 00:02:52,650 Dr. Nicola Powell: quick. But there's other things too. There's things like population 53 00:02:52,650 --> 00:02:57,929 Dr. Nicola Powell: rebounding quicker than anticipated, higher construction costs which feed into 54 00:02:57,929 --> 00:03:01,020 Dr. Nicola Powell: higher home prices. And we've also got, which has got 55 00:03:01,020 --> 00:03:04,919 Dr. Nicola Powell: a lot of publicity around, is a tight rental market. 56 00:03:04,950 --> 00:03:08,369 Dr. Nicola Powell: We've got Australia's vacancy rate of 0. 8%, that is a 57 00:03:08,370 --> 00:03:11,699 Dr. Nicola Powell: record low. So, all of these things together, I think, 58 00:03:11,700 --> 00:03:15,089 Dr. Nicola Powell: are helping to drive pricing up even on the backdrop 59 00:03:15,089 --> 00:03:17,940 Dr. Nicola Powell: of higher interest rates and high levels of inflation. 60 00:03:18,360 --> 00:03:20,520 Sean Aylmer: Okay. So, looking into the crystal ball, what about the 61 00:03:20,520 --> 00:03:24,270 Sean Aylmer: next 12 months? You've just explained what's happened now. Is 62 00:03:24,270 --> 00:03:26,490 Sean Aylmer: there more supply in the market? Where do you think 63 00:03:26,490 --> 00:03:26,970 Sean Aylmer: we're going? 64 00:03:27,690 --> 00:03:30,508 Dr. Nicola Powell: There is absolutely more supply in the market, and I 65 00:03:30,508 --> 00:03:34,589 Dr. Nicola Powell: actually think conditions are improving for buyers because choice has 66 00:03:34,590 --> 00:03:36,869 Dr. Nicola Powell: risen. And you can kind of see that coming out 67 00:03:36,869 --> 00:03:39,630 Dr. Nicola Powell: in clearance rates where buyers, a little bit of that 68 00:03:39,630 --> 00:03:42,210 Dr. Nicola Powell: fear has gone in terms of they know that there 69 00:03:42,210 --> 00:03:46,110 Dr. Nicola Powell: are fresh listings coming on, we're starting to see total 70 00:03:46,110 --> 00:03:49,019 Dr. Nicola Powell: supply build up. And what was very evident this quarter, 71 00:03:49,020 --> 00:03:51,869 Dr. Nicola Powell: prices are rising. But I will stress that the pace 72 00:03:51,870 --> 00:03:55,650 Dr. Nicola Powell: of growth has now moderated. So, what we are expecting 73 00:03:55,650 --> 00:03:58,950 Dr. Nicola Powell: over the next 12 months is prices are likely to 74 00:03:58,950 --> 00:04:01,500 Dr. Nicola Powell: rise, but at a much more subdued rate. And I 75 00:04:01,500 --> 00:04:03,780 Dr. Nicola Powell: am expecting that some of our capitals are likely to 76 00:04:03,780 --> 00:04:07,080 Dr. Nicola Powell: go sideways. And that's exactly what we've seen coming out 77 00:04:07,080 --> 00:04:10,320 Dr. Nicola Powell: of Melbourne. Melbourne prices, pretty much for the last 12 78 00:04:10,320 --> 00:04:13,349 Dr. Nicola Powell: months, have been bobbing around a price trough. They nudged 79 00:04:13,350 --> 00:04:17,310 Dr. Nicola Powell: marginally higher. But when in a market like Melbourne, a 80 00:04:17,310 --> 00:04:20,190 Dr. Nicola Powell: major capital city, can you actually purchase at a price 81 00:04:20,190 --> 00:04:23,490 Dr. Nicola Powell: trough? It's a very balanced market at the moment. We're 82 00:04:23,490 --> 00:04:25,618 Dr. Nicola Powell: seeing that come out in clearance rates, we're seeing that 83 00:04:25,620 --> 00:04:28,948 Dr. Nicola Powell: come out with sideways movement in pricing. So, long and 84 00:04:28,949 --> 00:04:31,169 Dr. Nicola Powell: short, I do think that we are likely to see 85 00:04:31,170 --> 00:04:33,810 Dr. Nicola Powell: prices rise, but at a much more moderate pace and 86 00:04:33,810 --> 00:04:35,700 Dr. Nicola Powell: some of our cities will go sideways. 87 00:04:36,330 --> 00:04:38,760 Sean Aylmer: Okay. So, let's stick with Melbourne. I know in the 88 00:04:38,760 --> 00:04:41,190 Sean Aylmer: report it showed that Melbourne is now the second most 89 00:04:41,190 --> 00:04:45,570 Sean Aylmer: expensive city in which to purchase a unit, behind Sydney, 90 00:04:45,570 --> 00:04:48,568 Sean Aylmer: overtook Canberra which it had been behind for a year 91 00:04:48,569 --> 00:04:51,628 Sean Aylmer: or so. Units in Melbourne, they seem to be doing okay. 92 00:04:52,079 --> 00:04:56,039 Dr. Nicola Powell: They do. I actually think this is probably the curveball for 93 00:04:56,040 --> 00:04:59,520 Dr. Nicola Powell: Melbourne in terms of unit prices have seen the strongest 94 00:04:59,520 --> 00:05:02,160 Dr. Nicola Powell: six months in terms of price growth since the latter 95 00:05:02,160 --> 00:05:06,750 Dr. Nicola Powell: half of 2019. So, units are outperforming house prices. Units 96 00:05:06,750 --> 00:05:09,750 Dr. Nicola Powell: rose five times faster than house prices over the September 97 00:05:09,750 --> 00:05:15,059 Dr. Nicola Powell: quarter. And actually they're just over halfway into a recovery. When 98 00:05:15,059 --> 00:05:17,879 Dr. Nicola Powell: you compare that to where a Melbourne house price is 99 00:05:17,880 --> 00:05:21,270 Dr. Nicola Powell: sitting in terms of its recovery, they have only recouped 100 00:05:21,270 --> 00:05:24,060 Dr. Nicola Powell: one seventh of what was lost during the downturn. So, 101 00:05:24,480 --> 00:05:28,170 Dr. Nicola Powell: I think this speaks to probably where demand is coming 102 00:05:28,170 --> 00:05:31,770 Dr. Nicola Powell: from. It speaks to affordability issues and some of our 103 00:05:31,770 --> 00:05:35,460 Dr. Nicola Powell: capital cities are actually seeing unit prices outperform house prices, 104 00:05:35,460 --> 00:05:38,250 Dr. Nicola Powell: and I think that speaks volumes for affordability barriers. 105 00:05:38,610 --> 00:05:40,380 Sean Aylmer: Stay with me, Nicola. We'll be back in a minute. 106 00:05:40,380 --> 00:05:50,309 Sean Aylmer: My guest today is Dr. Nicola Powell, Domain's Chief of Research and 107 00:05:50,309 --> 00:05:54,150 Sean Aylmer: Economics. One of the things I noticed in the report, 108 00:05:54,779 --> 00:05:58,890 Sean Aylmer: in Melbourne and Canberra and Adelaide and Brisbane, I think, 109 00:05:59,430 --> 00:06:03,000 Sean Aylmer: a unit costs about 55% to 60% of the cost 110 00:06:03,000 --> 00:06:05,669 Sean Aylmer: of a house. This is median cost we're talking. Whereas 111 00:06:05,670 --> 00:06:08,760 Sean Aylmer: Sydney I think was 49% or something rather like that. 112 00:06:08,760 --> 00:06:12,900 Sean Aylmer: Why are units relatively cheap, and I say relatively there, 113 00:06:13,500 --> 00:06:15,690 Sean Aylmer: in Sydney compared to other cities? 114 00:06:16,830 --> 00:06:19,800 Dr. Nicola Powell: It's extraordinary actually. When you look at the price gap 115 00:06:19,800 --> 00:06:23,279 Dr. Nicola Powell: between houses and units, Sydney and Hobart are the only 116 00:06:23,279 --> 00:06:26,099 Dr. Nicola Powell: two cities with a record price gap. And as you 117 00:06:26,099 --> 00:06:29,789 Dr. Nicola Powell: said, a house in Sydney is twice the price of 118 00:06:29,790 --> 00:06:33,000 Dr. Nicola Powell: a unit. What does this tell us? I do think 119 00:06:33,000 --> 00:06:35,760 Dr. Nicola Powell: it speaks to probably back to what we saw during 120 00:06:35,760 --> 00:06:38,430 Dr. Nicola Powell: the pandemic where we saw such an over performance of 121 00:06:38,430 --> 00:06:41,790 Dr. Nicola Powell: house prices and, while we saw a bigger dip in 122 00:06:41,790 --> 00:06:46,770 Dr. Nicola Powell: house prices during the downturn last year, it's almost recouped 123 00:06:46,770 --> 00:06:49,619 Dr. Nicola Powell: that and that record price gap is there again. So, 124 00:06:50,130 --> 00:06:53,700 Dr. Nicola Powell: it is surprising because Sydney is actually probably the most... 125 00:06:53,820 --> 00:06:56,609 Dr. Nicola Powell: Or is the most unaffordable capital city out of all 126 00:06:56,610 --> 00:06:59,250 Dr. Nicola Powell: of our cities. So, in a sense, you would say that 127 00:06:59,250 --> 00:07:03,300 Dr. Nicola Powell: unit prices offer that affordable alternative. I think units are 128 00:07:03,389 --> 00:07:06,388 Dr. Nicola Powell: probably, at this moment in time, undervalued when you do 129 00:07:06,389 --> 00:07:09,480 Dr. Nicola Powell: that comparison to house prices in a market like Sydney. 130 00:07:09,839 --> 00:07:12,270 Dr. Nicola Powell: And I have to say it's not very often I 131 00:07:12,270 --> 00:07:15,870 Dr. Nicola Powell: get surprised by property data, but I was actually quite 132 00:07:15,870 --> 00:07:19,620 Dr. Nicola Powell: surprised that Sydney is yet again got a record price 133 00:07:19,620 --> 00:07:23,340 Dr. Nicola Powell: gap because I really anticipated that to narrow and it hasn't. 134 00:07:24,270 --> 00:07:26,880 Sean Aylmer: What about Canberra? Why is Canberra so expensive, Nicola? 135 00:07:27,870 --> 00:07:32,400 Dr. Nicola Powell: Look, I think Canberra has seen a phenomenal period. It 136 00:07:32,400 --> 00:07:37,650 Dr. Nicola Powell: saw the largest upswing that it has ever experienced. I 137 00:07:37,650 --> 00:07:41,520 Dr. Nicola Powell: think the value for money, while it is expensive, what 138 00:07:41,520 --> 00:07:44,130 Dr. Nicola Powell: you get in Canberra relative to other cities is bigger, 139 00:07:44,309 --> 00:07:46,709 Dr. Nicola Powell: you get a larger plot of land, I think your 140 00:07:46,709 --> 00:07:49,290 Dr. Nicola Powell: money goes further in terms of what you're actually purchasing. I 141 00:07:49,290 --> 00:07:51,180 Dr. Nicola Powell: mean, if you bought like for like in terms of 142 00:07:51,180 --> 00:07:53,520 Dr. Nicola Powell: the dollar value in Sydney, it would look very different 143 00:07:53,520 --> 00:07:56,700 Dr. Nicola Powell: in the same for Melbourne, and probably many of our 144 00:07:56,700 --> 00:08:00,000 Dr. Nicola Powell: other capital cities as well. I think Canberra saw a 145 00:08:00,000 --> 00:08:03,299 Dr. Nicola Powell: phenomenal boom, it also did see the steepest downturn the 146 00:08:03,299 --> 00:08:06,059 Dr. Nicola Powell: city has ever seen, and it took a while to 147 00:08:06,059 --> 00:08:09,390 Dr. Nicola Powell: move into a recovery compared to our other capital cities. But 148 00:08:09,390 --> 00:08:13,770 Dr. Nicola Powell: I largely think it's the lifestyle that Canberra offers. I 149 00:08:13,830 --> 00:08:16,020 Dr. Nicola Powell: do think there is an element, dare I say it, 150 00:08:16,020 --> 00:08:19,560 Dr. Nicola Powell: that Canberra was in fact Australia's best kept secret because 151 00:08:19,560 --> 00:08:20,340 Dr. Nicola Powell: it's so- 152 00:08:20,340 --> 00:08:21,270 Sean Aylmer: Hold on, Nicola. Where do you live? 153 00:08:22,320 --> 00:08:23,340 Dr. Nicola Powell: I do live in Canberra. 154 00:08:23,970 --> 00:08:26,730 Sean Aylmer: Oh, right. Just pointing that out to listeners. Just best 155 00:08:26,730 --> 00:08:27,690 Sean Aylmer: kept secret. Go on. 156 00:08:27,990 --> 00:08:32,639 Dr. Nicola Powell: Yes, it is, it allows you to have that balance if you have a 157 00:08:32,639 --> 00:08:35,670 Dr. Nicola Powell: young family. But I do think that what we saw is an extraordinary pace of growth. 158 00:08:35,670 --> 00:08:41,098 Sean Aylmer: Okay. So, I mean, we've talked about Canberra, we've talked about Sydney, Melbourne. 159 00:08:41,160 --> 00:08:43,530 Sean Aylmer: We better talk about Brisbane and Adelaide. I always find 160 00:08:43,530 --> 00:08:47,040 Sean Aylmer: those markets kind of fascinating because I've never lived in 161 00:08:47,040 --> 00:08:49,920 Sean Aylmer: either of those two cities, but you can see some 162 00:08:50,309 --> 00:08:53,250 Sean Aylmer: real outliers when it comes to clearance rates, for example, 163 00:08:53,429 --> 00:08:58,020 Sean Aylmer: or even just individual sales. They seem to be almost 164 00:08:58,020 --> 00:09:01,200 Sean Aylmer: more volatile, over the longer term, than the other cities. 165 00:09:01,200 --> 00:09:02,370 Sean Aylmer: But maybe I'm making that up. 166 00:09:02,910 --> 00:09:05,790 Dr. Nicola Powell: I'm not sure if Adelaide quite fits that because Adelaide 167 00:09:05,790 --> 00:09:08,280 Dr. Nicola Powell: has always been known as that quiet achiever. And it 168 00:09:08,280 --> 00:09:11,219 Dr. Nicola Powell: was the best performing capital city over the September quarter, 169 00:09:11,219 --> 00:09:13,799 Dr. Nicola Powell: and it's actually Australia's only capital city to have a 170 00:09:13,799 --> 00:09:18,720 Dr. Nicola Powell: record high house and unit prices. It's also had a 171 00:09:18,720 --> 00:09:22,770 Dr. Nicola Powell: really strong auction market. We've continued to see some of 172 00:09:22,770 --> 00:09:25,770 Dr. Nicola Powell: the best auction clearance rates coming out of Adelaide. And so, 173 00:09:26,160 --> 00:09:28,890 Dr. Nicola Powell: that quiet achiever title for Adelaide, really, it kind of 174 00:09:29,099 --> 00:09:32,429 Dr. Nicola Powell: continues to defy that and it's one of those markets 175 00:09:32,429 --> 00:09:37,319 Dr. Nicola Powell: that continues to see record pricing. Brisbane is an interesting 176 00:09:37,320 --> 00:09:40,708 Dr. Nicola Powell: one because I actually think what's quite remarkable, and I 177 00:09:40,710 --> 00:09:44,218 Dr. Nicola Powell: will use that word for Brisbane, is that unit prices are at 178 00:09:44,429 --> 00:09:46,650 Dr. Nicola Powell: a record high in Brisbane. And it wasn't that long 179 00:09:46,650 --> 00:09:50,189 Dr. Nicola Powell: ago, we had a massive oversupply of units due to 180 00:09:50,190 --> 00:09:53,429 Dr. Nicola Powell: high levels of development across Brisbane. And I always wondered 181 00:09:53,429 --> 00:09:56,100 Dr. Nicola Powell: what point in time will we actually see that market 182 00:09:56,100 --> 00:09:59,520 Dr. Nicola Powell: balance out and the rental prices start to rise and 183 00:09:59,520 --> 00:10:03,780 Dr. Nicola Powell: also unit prices rise. We've got that. It's the first 184 00:10:03,780 --> 00:10:08,069 Dr. Nicola Powell: time ever units in Brisbane have outperformed house prices for 185 00:10:08,070 --> 00:10:12,569 Dr. Nicola Powell: six consecutive quarters. We've never seen that and actually it's dropped the 186 00:10:12,570 --> 00:10:15,030 Dr. Nicola Powell: price gap between property types to a two- year low. 187 00:10:15,030 --> 00:10:18,120 Dr. Nicola Powell: So, great for anyone looking to make that leap between 188 00:10:18,120 --> 00:10:18,960 Dr. Nicola Powell: property types. 189 00:10:19,260 --> 00:10:21,030 Sean Aylmer: And just quickly, we are running out of time, but 190 00:10:21,210 --> 00:10:24,270 Sean Aylmer: better mention Perth and Hobart. Hobart seems to be struggling still. 191 00:10:25,259 --> 00:10:30,150 Dr. Nicola Powell: Yeah. Look, it is. And Hobart was one of those markets that was, 192 00:10:30,330 --> 00:10:33,240 Dr. Nicola Powell: along with Canberra... And there's actually lots of similarities between 193 00:10:33,240 --> 00:10:35,760 Dr. Nicola Powell: the Canberra and Hobart market. They were both the last 194 00:10:35,760 --> 00:10:40,710 Dr. Nicola Powell: ones to bottom out. It's only recouped about 17,000 of the 64, 000 that 195 00:10:40,710 --> 00:10:44,160 Dr. Nicola Powell: was lost, so about one quarter into recovery. The drain 196 00:10:44,160 --> 00:10:47,400 Dr. Nicola Powell: on Hobart though is interstate migration is at a loss, 197 00:10:47,400 --> 00:10:50,429 Dr. Nicola Powell: so it's losing more people to other states and territories 198 00:10:50,429 --> 00:10:52,740 Dr. Nicola Powell: than it's gaining. And that's actually the same for the ACT. 199 00:10:53,400 --> 00:10:56,040 Dr. Nicola Powell: And I always think that, when you see that coming 200 00:10:56,040 --> 00:10:58,770 Dr. Nicola Powell: out in terms of those shifts in demographics, you also 201 00:10:58,770 --> 00:11:01,530 Dr. Nicola Powell: then tend to see a softer housing market also. 202 00:11:02,040 --> 00:11:03,089 Sean Aylmer: Okay. And Perth? 203 00:11:03,689 --> 00:11:07,679 Dr. Nicola Powell: Yeah, Perth is also one of Australia's better performing capital cities. And I 204 00:11:07,679 --> 00:11:12,300 Dr. Nicola Powell: think Perth, again, it's these demographic trends that are supporting 205 00:11:12,300 --> 00:11:16,830 Dr. Nicola Powell: positive growth, continually positive growth in Perth's housing market. House 206 00:11:16,830 --> 00:11:20,039 Dr. Nicola Powell: prices that are record high, it's got positive net interstate 207 00:11:20,040 --> 00:11:23,369 Dr. Nicola Powell: migration, and normally into WA it's negative, and we've got 208 00:11:23,369 --> 00:11:26,970 Dr. Nicola Powell: record levels of overseas migration. And particularly so in Perth, 209 00:11:27,330 --> 00:11:31,530 Dr. Nicola Powell: a chronic undersupply of housing. Total supply of homes on 210 00:11:31,530 --> 00:11:35,730 Dr. Nicola Powell: the market in Perth is 39% below the five- year 211 00:11:35,730 --> 00:11:37,050 Dr. Nicola Powell: average for this time of year. 212 00:11:37,440 --> 00:11:39,780 Sean Aylmer: Wow. Nicola, thanks for coming on to Fear and Greed. 213 00:11:40,170 --> 00:11:41,039 Dr. Nicola Powell: Thanks for having me. 214 00:11:41,400 --> 00:11:44,220 Sean Aylmer: That was Dr. Nicola Powell, Domain's Chief of Research and 215 00:11:44,220 --> 00:11:47,550 Sean Aylmer: Economics. This is the Fear and Greed Business Interview. Join 216 00:11:47,550 --> 00:11:49,500 Sean Aylmer: us every morning for the full episode of Fear and 217 00:11:49,500 --> 00:11:53,309 Sean Aylmer: Greed, Australia's best business podcast. I'm Sean Aylmer. Enjoy your day.