L67 Property Operators and Real Estate Services

Towering infernos of cash

roymorgansocial Leave a comment

Original article by Brad Norington, Ben Wilmot
The Australian – Page: 1 & 4 : 22-May-20

Citigroup has forecast that the value of office buildings in Australia’s major CBDs could fall by more than 15 per cent in the wake of the coronavirus pandemic. Demand for centralised office space is likely to fall if the shift to working from home is sustained once the crisis abates. This in turn could put downward pressure on office rents. Meanwhile, JLL has forecast that the total amount of vacant office space across the nation’s CBDs will rise from 1.46 million square metres prior to the pandemic to about 1.88 million square metres by the end of 2020.

CORPORATES
CITIGROUP PTY LTD, JONES LANG LASALLE AUSTRALIA PTY LTD

House prices crash 30pc in doomsday scenario

roymorgansocial Leave a comment

Original article by James Kirby
The Australian – Page: 20 : 14-May-20

The Commonwealth Bank of Australia has warned that house prices could fall by 32 per cent over the next three years if there is a prolonged economic downturn. This worst-case scenario is based on the unemployment rate exceeding nine per cent. CBA’s base case downturn scenario is for house prices to fall by 11 per cent. The bank has identified unemployment, underemployment, changes to income and house prices as the key drivers for the housing market.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Coronavirus prompts regional migration trend as people seek simpler life

roymorgansocial Leave a comment

Original article by Hannah Ross
The New Daily – Page: Online : 11-May-20

Real Estate Institute of New South Wales president Leanne Pilkington expects the COVID-19 pandemic will result in increased demand for rural and regional properties. Pilkington says the virus has made people realise how easy it is work from home, and that they do not need to live in big cities any more for their work. Regional and urban planner Bette O’Brien says regional economies will get the biggest benefit from a post-pandemic migration if people from all age groups relocate from urban areas.

CORPORATES
THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES

Companies fight for access to JobKeeper wage scheme

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 32 : 23-Apr-20

Many companies in the property sector meet the turnover reduction thresholds for the JobKeeper scheme, but their corporate restructure means they may be ineligible. Such companies are split into an operating arm that generates income and a services arm that actually employs their staff, but the turnover test will be applied to each entity separately. These structures are widely used by companies such as retail property managers and student accommodation providers. Operators of retirement villages may also be ineligible for the scheme.

CORPORATES
AUSTRALIAN TAXATION OFFICE, PROPERTY COUNCIL OF AUSTRALIA LIMITED, LENDLEASE GROUP – ASX LLC, STOCKLAND – ASX SGP, MERITON APARTMENTS PTY LTD

Prices face 30pc fall if lockdown lingers

roymorgansocial Leave a comment

Original article by Mackenzie Scott
The Australian – Page: 2 : 8-Apr-20

SQM Research MD Louis Christopher says confidence in the housing market will recover if coronavirus-induced restrictions are eased by the end of May. He warns that residential property prices could fall by up to 30 per cent in Sydney and Melbourne if there is a second wave of coronavirus infections during winter and the restrictions have to remain in place. Christopher adds that the closure of the nation’s borders will reduce underlying demand for housing; he expects this to be one of the last restrictions to be lifted.

CORPORATES
SQM RESEARCH PTY LTD

Property sales collapse, price falls ahead: UBS

roymorgansocial Leave a comment

Original article by Mackenzie Scott
The Australian – Page: 16 : 3-Apr-20

Economists generally expect Australia’s residential property prices to decline by 5-20 per cent due to the impact of the coronavirus pandemic. UBS analysts have declined to forecast the likely effect of the health crisis on house prices, although they have warned that governments may need to step in with measures such as stamp duty cuts if the housing market falls too far. The investment bank adds that the ban on auctions and open houses is likely to prompt a sharp decline in sales volumes in the near-term.

CORPORATES
UBS HOLDINGS PTY LTD

Event cancellations to hit resilient hotel sector

roymorgansocial Leave a comment

Original article by Larry Schlesinger
The Australian Financial Review – Page: 35 : 13-Mar-20

Sydney and Melbourne hotel rooms experienced vacancy falls of around 20 per cent in the first week of March when compared to the same time in 2019, according to research company STR. STR was making a presentation on the impact of COVID-19 thus far, with hotels in Asia and parts of Europe seeing a much greater impact than Australian hotels. However, STR expects COVID-19 to have a much greater impact on the Australian hotel sector in coming months, due to the likelihood of major events being cancelled and the prospect of restrictions being imposed on domestic travel.

CORPORATES
STR GLOBAL LIMITED

House prices set for double-digit growth: AMP

roymorgansocial Leave a comment

Original article by Euan Black
The New Daily – Page: Online : 28-Feb-20

AMP Capital has forecast 10 per cent growth in house prices nationally in 2020, but growth is expected to slow to around five per cent in 2021. Senior economist Diana Mousina says factors such as the interest rate cuts in 2019 and the potential for further monetary policy easing in 2020 should offset any impact that rising household debt levels and tighter lending standards may have on house prices.

CORPORATES
AMP CAPITAL INVESTORS LIMITED

Shortage of housing to hit big cities

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 31 & 34 : 13-Feb-20

A new report from Charter Keck Cramer has warned that the recent slowdown in apartment developments means that Sydney, Melbourne and Brisbane will face a housing supply shortage by the end of 2021. Dwelling approvals across Australia fell by 18.5 per cent in calendar 2018, to the lowest level since 2012; all three east coast cities recorded a decline in apartment developments for the year. Rob Burgess of Charter Keck Cramer says the looming housing shortage will put upward pressure on rents.

CORPORATES
CHARTER KECK CRAMER

High prices foiling first-home buyers

roymorgansocial Leave a comment

Original article by Patrick Commins
The Australian – Page: 4 : 17-Jan-20

The number of first-home buyers approved for new loans in November fell by 0.9 per cent, according to the Australian Bureau of Statistics, while the average loan for first-home buyers increased to a record $410,000. ANZ economist Adelaide Timbrell says fewer first-home buyers taking out bigger loans is an indication that rising house prices are making it harder for first-home buyers to get into the property market. She says the ANZ expects an interest rate cut in February, which is likely to push up house prices and reduce housing affordability.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,{SPAC}AUSTRALIAN BUREAU OF STATISTICS