L67 Property Operators and Real Estate Services

House-price optimism yet to reach investors

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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

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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

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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

Developer says tower cracks years old

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Original article by Brad Norington, Ben Wilmot
The Australian – Page: 7 : 27-Jun-19

Aland Developments MD Andrew Hrsto has rejected suggestions that construction work on his company’s Peak Towers project caused the cracks in the structure of the adjacent Mascot Towers. Hrsto says an engineering report on buildings near the Peak Towers project showed that structural defects were found in the Mascot Towers building several years before work on his company’s project commenced. John Barilaro, the Deputy Premier of New South Wales, recently claimed that the problems at Mascot Towers were caused by construction work at adjacent building sites.

CORPORATES
ALAND DEVELOPMENTS, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

Sydney house prices forecast to grow 7pc

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Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 3 : 27-Jun-19

Domain Group is upbeat about the outlook for Australia’s residential property market, forecasting that prices will rebound by the end of 2019. Domain economist Trent Wiltshire says the Coalition’s federal election win, official interest rate cuts and the prospect of changes to mortgage serviceability tests bode well for housing prices. Domain forecasts that house prices in Sydney will rise two per cent in the second half of 2019 and up to five per cent in 2020, while prices in Melbourne will rise by one per cent by year’s end and 1-3 per cent in 2020.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, MOODY’S ANALYTICS AUSTRALIA PTY LTD, CORELOGIC AUSTRALIA PTY LTD

Desperate off-the-plan buyers seek early exit

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 33 : 18-Jun-19

A rise in valuation shortfalls is seeing a surge in buyers of off-the-plan apartments in Melbourne trying to get out of their contracts. Many such buyers are using DIY website forsalebyowner to do so, with website operator Colin Sachs noting that such apartments cannot be sold via traditional real estate agents. He says the situation presents enormous risks for developers, as they need these buyers to pay up so that they can fund their projects.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, FORSALEBYOWNER, 360 PTY LTD

Affordability still an issue for most home owners

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Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 34 : 11-Jun-19

A survey by ME Bank shows that 88 per cent of Australians regard housing affordability as a major concern. The survey also found that 94 per cent of first-home buyers are concerned about housing affordability, compared with 87 per cent of owner-occupiers and 83 per cent of property investors. The survey was undertaken in late April, prior to the re-election of the Coalition and the recent reduction in official interest rates.

CORPORATES
ME BANK, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Housing at its most affordable

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Original article by Mackenzie Scott, Samantha Bailey
The Australian – Page: 2 : 7-Jun-19

The ANZ-CoreLogic Housing Affordability report shows that Sydney and Melbourne are still the least affordable markets in Australia for buying a home. However, the report notes that overall, housing affordability has reached its highest level since December 2016. The downturn in the housing market also means that it is cheaper to buy rather than rent in many suburbs across Australia. The report is based on housing data from December 2018.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CORELOGIC AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Confidence returning as housing hits the bottom

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Original article by Ben Wilmot, Mackenzie Scott
The Australian – Page: 17 & 21 : 5-Jun-19

Shane Oliver of AMP Capital says the downturn in the residential property market is likely to reach its bottom earlier than expected, citing factors such as the Reserve Bank’s interest rate cut and the outcome of the recent federal election. Tim Lawless of CoreLogic also anticipates an upturn in the housing market, although he adds that economic uncertainty means a rebound in house prices is unlikely in the near-term.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD, McGRATH LIMITED – ASX MEA, MORGAN STANLEY AUSTRALIA LIMITED, CBRE PTY LTD, PLACE ESTATE AGENTS

Property slump has another year: S&P

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Original article by Richard Gluyas
The Australian – Page: Online : 4-Jun-19

Credit ratings agency Standard & Poor’s says factors such as the Coalition’s election win and a likely official interest rate cut in June will bolster the residential property market. However, the firm does not expect houses prices in Melbourne and Sydney to rebound for another 6-12 months, while George Tharenou of UBS forecasts that house prices will stabilise later in 2019. New data from CoreLogic shows that house prices fell by 0.4 per cent in May, and by 7.3 per cent year-on-year.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, UBS HOLDINGS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY