Cure for housing fix ‘worse than disease’: UBS

Original article by Duncan Hughes
The Australian Financial Review – Page: 10 : 23-Aug-19

Investment bank UBS has warned that the Reserve Bank of Australia’s move towards extremely low interest rates risks reflating the residential property ‘bubble’. The ultra-low rates are also putting pressure on the dividend policies and margin levels of the nation’s large banks, while plans by the Australian Prudential Regulation Authority to reduce related-party exposure limits with regard to Tier 1 capital will put pressure on the banks’ capital.

CORPORATES
UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA RADIATION LABORATORIES, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Claims of underquoting an odd sign of a market rising

Original article by Su-Lin Tan, Nila Sweeney
The Australian Financial Review – Page: 34 : 22-Aug-19

Some buyers’ advocates have expressed concern that the residential property market is again being affected by underquoting. Melbourne-based Scott Hall notes that there has been a significant decline in underquoting by real estate agents since legislation to crack down on the practice was introduced in 2017. Real Estate Institute of New South Wales CEO Tim McKibbin agrees that underquoting has become less prevalent in recent years.

CORPORATES
THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES, FAIR TRADING NSW, VICTORIA. DEPT OF JUSTICE AND REGULATION. CONSUMER AND BUSINESS AFFAIRS VICTORIA, RAINE AND HORNE PTY LTD

Sims pushes for competition in e-conveyancing

Original article by Joyce Moullakis
The Australian – Page: 17 & 20 : 19-Aug-19

Australian Competition & Consumer Commission chairman Rod Sims has indicated that it may seek to become more involved in the electronic property settlement market. Revenue from e-conveyancing is estimated to be around $270 million a year, with PEXA seen to be effectively operating as a regulated monopoly. A review commissioned by the National Electronic Conveyancing Council found that enabling a competitive market within the sector may not necessarily be a good thing, although David Wills, the CEO of Sympli contends that consumers will benefit from competition and interoperability.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, PROPERTY EXCHANGE AUSTRALIA, NATIONAL ELECTRONIC CONVEYANCING COUNCIL, SYMPLI, ASX LIMITED – ASX ASX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Buyers brave winter chill as property market warms

Original article by Nick Lenaghan
The Australian Financial Review – Page: 8 : 12-Aug-19

Figures from CoreLogic indicate Sydney recorded a preliminary auction clearance rate of 81.2 per cent for the weekend of 10-11 August, while Melbourne recorded a preliminary auction clearance rate of 73.2 per cent. Nationally, the preliminary auction clearance rate came in at 70.4 per cent. Louis Christopher from SQM says the preliminary results suggest the residential real estate market is on the improve, while he expects listings to rise in the upcoming spring "selling season".

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

High-rise units are ‘real estate’s equivalent of the bubonic plague’, says researcher

Original article by Euan Black
The New Daily – Page: Online : 8-Aug-19

A report from Propertyology notes that growth in Australia’s median house price exceeded that of apartments by 20 per cent over the five years to April, and the firm expects this trend to continue for some time. Propertyology director Simon Pressley says factors such as an apartment glut and concerns about building defects means that people who have bought apartments in medium-to-high-density towers over the last two decades should sell them as soon as possible. He warns that some of these buildings are of such poor quality that demolition may be the only option to restore public confidence in high-rise towers.

CORPORATES
PROPERTYOLOGY, SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD

Underrated suburbs set for million-dollar club

Original article by Nila Sweeney
The Australian Financial Review – Page: 30 : 8-Aug-19

Data from Select Residential Property suggests that the median house price in 12 suburbs across Australia will rise above $1m over the next two years. They include Coal Point, Terrigal and Mount Pleasant in New South Wales and St Helena and Eltham North in Victoria. The price growth forecasts are based on a range of metrics, including auction clearance rates, vacancy rates, and the number of properties on the market.

CORPORATES
SELECT RESIDENTIAL PROPERTY, CORELOGIC AUSTRALIA PTY LTD

Jobs on the line as home builds slide

Original article by Michael Roddan
The Australian – Page: 4 : 31-Jul-19

Data from the Australian Bureau of Statistics shows that new housing approvals fell by 1.2 per cent during June and 26 per cent year-on-year. Apartment approvals were 40 per cent lower in June than at the same time in 2018. Matthew Hassan of Westpac expects further weakness in dwelling approvals over the remainder of 2019 and during the first half of 2020. George Tharenou of UBS warns that the downturn in housing approvals could put about 100,000 construction industry jobs at risk.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD

House-price optimism yet to reach investors

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 31 : 23-Jul-19

Australian investors are feeling less optimistic about the property market than they were three months ago, according to ME Bank’s latest property sentiment survey. However, overall sentiment regarding the market is more positive than it was in April. Although the downturn in the property market appears to have come to an end, fewer people between the age of 18 and 39 are feeling positive about the state of the property market than they were in April.

CORPORATES
ME BANK

Prices will start to rise again this year: ANZ

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 29 : 17-Jul-19

The ANZ Bank’s quarterly housing report is upbeat about the outlook for the residential property market. The bank expects the housing market downturn to reach bottom in the next few months, with a modest rebound toward the end of the year. ANZ forecasts house price growth of 3-4 per cent in Sydney during 2020, with prices in Melbourne to increase by four per cent. The bank had not expected any house price growth in 2019 as recently as May.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BIS OXFORD ECONOMICS PTY LTD

Capitals hit bottom of property cycle

Original article by Duncan Hughes
The Australian Financial Review – Page: 3 : 1-Jul-19

Valuation company Herron Todd White contends that Melbourne, Perth, Darwin and Brisbane are at the bottom of the residential property cycle, and that Sydney is not far off getting there. On the other hand, Canberra, where there is a shortage of property, is at market peak. HTW’s assessment comes as a majority of economists predict that the Reserve Bank will cut cash rates for the second month in a row, even though rates are already at a record low.

CORPORATES
HERRON TODD WHITE AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA