Future home-buyers are dealt a double blow today, with the Reserve Bank of Australia raising its cash rate target by 25 basis points to 3.85% and the Australian Bureau of Statistics releasing data that show a slump in building approvals in December.

How did the RBA justify the start of the rate hike cycle? Was the recent fall in building approvals temporary? What are the implications for the housing market outlook?

Our Chief Economist, Dr Sherman Chan, has just released her latest commentary, providing you with a concise summary of the key data and the likely impact on the property market.

Quick Snapshot

  • RBA Board unanimously decided to increase the cash rate target by 25 basis points to 3.85%.
  • Total of 14,879 residential dwellings were approved in December, the lowest monthly result in eight months
  • For residential building construction, output prices rose 0.9% in the December quarter.

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