L67 Property Operators and Real Estate Services

Stockland, Mirvac and Lendlease face settlement risk

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Original article by Ben Wilmot, Samantha Bailey
The Australian – Page: 17 & 23 : 31-Jan-19

UBS says settlement risk could be a problem for Mirvac, Lendlease and Stockland in coming years as a result of the downturn in Australia’s apartment market. US believes that Mirvac is most vulnerable to settlement risk; however, such concerns have been downplayed by the head of Mirvac’s residential division, Stuart Penklis. Meanwhile, Dominic Lambrinos of Chifley Securities says some developers could be forced to sell development sites at a discount.

CORPORATES
UBS HOLDINGS PTY LTD, MIRVAC GROUP – ASX MGR, LEND LEASE GROUP LIMITED – ASX LLC, STOCKLAND – ASX SGP, CHIFLEY SECURITIES, CORELOGIC AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP, CREDIT SUISSE (AUSTRALIA) LIMITED

Vicinity write-down hints at retail cycle’s turn: Citi

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 32 : 29-Jan-19

Shopping centre landlord Vicinity Centres advised in the week ending 25 January that it had reduced the value of its portfolio by $37 million. Although the write-down represented only a 0.2 per cent reduction in the value of Vicinity’s portfolio, Citi analysts have heralded it as being "symbolically significant" in a research note. Citi has stated that retail is its least preferred property option, and that recent news regarding the retail property sector suggests that conditions are declining more quickly than had previously been thought.

CORPORATES
VICINITY CENTRES – ASX VCX, CITIGROUP PTY LTD, SCENTRE GROUP – ASX SCG, GOODMAN GROUP – ASX GMG

Housing faces year of downturn

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Original article by Turi Condon
The Australian – Page: 17 : 25-Jan-19

National Australia Bank now expects dwelling prices in Sydney and Melbourne to fall by 15 per cent from peak to trough. NAB’s latest survey of property industry professionals shows that respondents generally expect New South Wales and Victoria to incur the biggest fall in housing prices over the next several years, although prices are also tipped to fall or remain flat outside of the two largest capitals. NAB’s separate survey of consumers shows that they are more upbeat about the outlook for the housing market than property professionals.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CREDIT SUISSE (AUSTRALIA) LIMITED, CORELOGIC AUSTRALIA PTY LTD, AMP CAPITAL INVESTORS LIMITED

Prices of big city houses to fall 25pc

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Original article by Melissa Yeo
The Australian – Page: 26 : 24-Jan-19

Shane Oliver of AMP Capital says residential property prices in Melbourne and Sydney could fall by up to 25 per cent from peak to trough. Oliver had previously flagged a potential fall of up to 20 per cent, and he has warned that the downturn in the housing market could impact on Australia’s economic growth. Oliver also expects the Reserve Bank to reduce the cash rate by 25 basis points in August and November, although he says weak economic data could prompt it to move sooner.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD, KPMG AUSTRALIA PTY LTD, DEMOGRAPHIA

Investors eye modest REIT return in 2019: Citi

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 32 : 24-Jan-19

Citigroup has forecast a total return of five per cent for Australian real estate investment trusts in 2019. The sector delivered an overall return of 2.9 per cent in 2018, although Citi analysts note that the spread between the best and worst performers was the widest since the global financial crisis. Citi is bearish about the outlook for retail REITs, although the firm has upgraded its rating on several residential REITs to a ‘buy’.

CORPORATES
CITIGROUP PTY LTD, DEXUS – ASX DXS, STOCKLAND – ASX SGP, LEND LEASE GROUP LIMITED – ASX LLC, ABACUS PROPERTY GROUP – ASX ABP, GOODMAN GROUP – ASX GMG, CHARTER HALL GROUP – ASX CHC, WESTFIELD CORPORATION, UNIBAIL-RODAMCO

The great Aussie dream severely unaffordable

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Original article by Ben Wilmot
The Australian – Page: 17 : 23-Jan-19

Demographia’s latest International Housing Affordability survey shows that residential property in Australia’s five largest capital cities remains expensive, relative to income. Sydney now ranks third behind Hong Kong and Vancouver among the least affordable housing markets of the 91 that were surveyed; Sydney’s median house multiple is 11.7, ahead of Melbourne with a median multiple of 9.7. Gladstone and Rockhampton are now the most affordable housing markets in Australia, with median multiples of 3.2 and 3.9 respectively.

CORPORATES
DEMOGRAPHIA

36,000 home hangover for Melbourne market: SQM Research

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Original article by Nathan Mawby
news.com.au – Page: Online : 9-Jan-19

SQM Research has reported that there were over 36,000 homes still up for sale in Melbourne at the end of 2018. This represents an increase of 25 per cent when compared to the end of 2017, when around 29,000 homes were on the market. SQM Research head Louis Christopher says the increase in unsold homes shows that sellers are not prepared to accept "low-ball" offers for their homes. He says that quite a number of vendors have withdrawn their homes from the market altogether, and that these sellers would put their houses back on the market in 2019.

CORPORATES
SQM RESEARCH PTY LTD

Towering loophole: taxpayer may foot the bill for defects

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Original article by Sam Buckingham-Jones
The Australian – Page: 1 & 2 : 11-Jan-19

The troubled-plagued Opal Tower is built on land that is owned by the Sydney Olympic Park Authority rather than the apartment building’s developer, Ecove. Legal experts say that under changes to the Home Building Act in 2010, the New South Wales Government may have to bear the costs associated with fixing the tower’s structural defects, as the SOPA is regarded as the developer of the building. The government will receive the report of an independent investigation into Opal Tower on 11 January.

CORPORATES
SYDNEY OLYMPIC PARK AUTHORITY, ECOVE GROUP PTY LTD, ICON CO PTY LTD, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, AUSTRALIA AVENUE DEVELOPMENTS PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, WSP GROUP, CHAMBERS RUSSELL LAWYERS, HOMEBUSH BAY DEVELOPMENT CORPORATION, SUPREME COURT OF NEW SOUTH WALES, BROOKFIELD MULTIPLEX LIMITED

Item 6 – Summer Health Series – Hips don’t lie (but they can hurt!)

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Original article by Zac Jones – BandTherapy
Market Research Update – Page: Online : 10-Jan-19

Do you ever get tight at the front of your hips after a long ride or run? Maybe after an intense workout the next day you struggle to walk with stiffness or pain. If this is the case then chances are you are not connecting the deep muscles of your legs to your spine properly. If you don’t connect these muscles (called iliopsoas) then you have to work twice as hard to move your body. That extra effort just to get things moving can be a key reason why you get tight, stiff and sore in your hips! This also applies if you have had or are considering a hip replacement, because that extra contraction of the muscles around the hip socket without release and access to free movement can render you vulnerable to reinjury and delay rehabilitation. There is no doubt the key areas of the hips and pelvis need to be strong to be able to do everything we ask of them, but too often we confuse strength with rigidity. The best way to approach freeing up the hips so we can move better pain free whilst also developing strength is to read more at https://bit.ly/2BUZWL5

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Approvals for new apartments slump

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Original article by Michael Bleby
The Australian Financial Review – Page: 5 : 10-Jan-19

New figures highlight the downturn in Australia’s residential construction market. Just 5,921 units, townhouses and semi-detached dwellings were approved in November 2018, which is 18.4 per cent lower than in October. In contrast, some 12,823 dwellings were approved during November 2017. There was a 9.1 per cent decline in approvals for detached dwellings in November, which is the lowest monthly level since July 2013.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY