PHOTO: Reserve Bank of Australia

The reduced flow of new arrivals to Australia is affecting some real estate markets, RBA Governor Philip Lowe noted in the July RBA meeting minutes released today.

He was referring primarily to the rental market, with vacancy rates increasing sharply in Sydney and Melbourne to just above four per cent.

Lowe cited the increase in the supply of rental housing in some areas.


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He said soft conditions in the rental market were expected to weigh on rent inflation for some time.

The RBA members also noted conditions in the established housing market remained mixed.

“Housing prices in some larger cities had declined in June, though were only a little below recent peaks in the case of Sydney and Melbourne”, Lowe said, adding that house prices in a number of smaller cities were broadly unchanged.