High prices foiling first-home buyers

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

High-rises spur surge in building approvals

Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 9-Jan-20

New figures show that there was an 11.8 per cent increase in building approvals in November, which was the strongest monthly growth since February. Approvals for high-density housing developments increased by 21 per cent in November, for an annual growth rate of six per cent. Tom Kennedy of JP Morgan notes that building approvals data tends to be volatile, but he adds that the latest figures suggest that approvals have begun to stabilise.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, BIS OXFORD ECONOMICS PTY LTD, RESERVE BANK OF AUSTRALIA, URBAN TASKFORCE AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

Housing set for recovery: Lendlease

Original article by Glenda Korporaal
The Australian – Page: 13 & 14 : 6-Jan-20

A number of factors will boost Australia’s residential property market in 2020, according to Lendlease executive Kylie Rampa. They include the federal government’s First Home Buyers Deposit Scheme, improved access to housing credit and historically low interest rates. Rampa adds that Lendlease wants to capitalise on its expertise in the affordable housing market in the UK to increase its presence in this sector in Australia.

CORPORATES
LENDLEASE GROUP – ASX LLC, RESERVE BANK OF AUSTRALIA

Home values surge to highest growth in 10 years

Original article by Nila Sweeney
The Australian Financial Review – Page: Online : 3-Jan-20

Australian home values rose by four per cent in the December quarter, according to the latest CoreLogic Home Value Index. The increase was the highest quarterly increase in a decade, although housing values in December only rose by 1.1 per cent. Sydney and Melbourne both recorded annual growth of 5.3 per cent for 2019, while the combined capitals recorded growth of three per cent in 2019.

CORPORATES

Rampant growth in Sydney, Melbourne runs out of steam

Original article by Nila Sweeney
The Australian Financial Review – Page: Online : 31-Dec-19

Sydney home values rose by 1.7 per cent in December, according to CoreLogic, while Melbourne home values increased by 1.4 per cent. This compares to growth of 2.7 per cent for Sydney and 2.2 per cent for Melbourne in November. Tim Lawless from CoreLogic expects that Sydney and Melbourne will record overall growth rates of 5.3 per cent in 2019; Sydney values fell by 8.9 per cent in 2018, while Melbourne values declined by seven per cent. CoreLogic expects Melbourne home values to increase by up to 14 per cent in 2020, while Sydney home values are predicted to rise by up to 12 per cent.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

New report finds govt must build at least 20,000 affordable homes a year

Original article by Euan Black
The New Daily – Page: Online : 11-Dec-19

The Australian Housing & Urban Research Institute has warned that the shortage of affordable rental housing has risen since 2011 and will continue to worsen in coming years. The AHURI estimates that the shortage of affordable homes for the lowest 20 per cent of income earners now tops 212,000. The lead researcher, Swinburne University’s Professor Kath Hulse, says that neither the public or private sector are building enough affordable homes. The AHURI has concluded that the federal government needs to build at least 200,000 affordable homes over the next 10 years.

CORPORATES
AUSTRALIAN HOUSING AND URBAN RESEARCH INSTITUTE, SWINBURNE UNIVERSITY OF TECHNOLOGY

WeWork announces it is cutting 2400 jobs globally

Original article by Peter Eavis
The Age – Page: Online : 22-Nov-19

Co-working pioneer WeWork has confirmed that it will shed staff, although the initial job cuts as not as severe as some media reports had forecast. The 2,400 jobs to be shed equates to almost 20 per cent of WeWork’s global workforce. WeWork also intends to sell or shut down non-core business units, which will further reduce its global headcount by about 1,000. A similar number of employees will be transferred to JLL in December, when cleaning and building maintenance work is outsourced to the real estate services group.

CORPORATES
WEWORK, JLL

WeWork juggernaut runs out of puff

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 32 : 21-Nov-19

Media reports in the US have suggested that co-working pioneer WeWork will retrench 6,000 employees, which is nearly half of its global workforce. Meanwhile, WeWork’s Australian arm is believed to have cancelled deals to lease 20,000sq m of office space in the Sydney CBD and up to 50 per cent of an office building at 100 Queen Street in Melbourne. Sources have also indicated that a proposed deal for WeWork to acquire 401 Collins Street in Melbourne from Impact Investment Group is also unlikely to proceed. It would have been WeWork’s first real estate acquisition in Australia. The company currently has 16 co-working sites in Australia.

CORPORATES
WEWORK, WEWORK AUSTRALIA PTY LTD, IMPACT INVESTMENT GROUP PTY LTD, SOFTBANK CORPORATION, MIRVAC GROUP – ASX MGR, CHINA INVESTMENT CORPORATION, GPT GROUP – ASX GPT

Rising market driving spike in underquoting

Original article by Duncan Hughes
The Australian Financial Review – Page: 11 : 18-Nov-19

Real estate agents have warned that underquoting is again becoming widespread in the industry, as the residential property market rebounds from the recent downturn. Underquoting was rife during the previous housing boom, and some agents are concerned that the practice is undermining buyers’ confidence. Hoskins Real Estate and one of its directors were recently ordered to pay almost $890,000 in penalties and compensation for underquoting.

CORPORATES
HOSKINS REAL ESTATE

Sydney, Melbourne prices take off in 2020

Original article by Nila Sweeney
The Australian Financial Review – Page: 33 & 39 : 14-Nov-19

SQM Research MD Louis Christopher expects growth in housing prices in Australia’s capital cities to average 11 per cent in 2020. The latest edition of Christopher’s Housing Boom and Bust Report forecasts that dwelling prices in Melbourne will rise by up to 15 per cent, while Sydney’s housing market will record growth of 10-14 per cent. However, the Darwin market is expected to buck the trend, with a two per cent downturn in 2020. Christopher says the housing market rebound is unlikely to be sustained over the longer term.

CORPORATES
SQM RESEARCH PTY LTD, AMP CAPITAL INVESTORS LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY