Sydney median house price rises in June quarter

Original article by Michael Bleby
The Australian Financial Review – Page: Online : 18-Sep-19

The median price for Sydney homes rose $5,000 to $875,000 in the June quarter, according to the Australian Bureau of Statistics, while Melbourne’s median house price held at $680,000. Prices for prices for detached dwellings fell nationally by 0.6 per cent, compared to a 3.1 per cent decline in the March quarter, while prices for attached dwellings fell by 0.8 per cent, compared to a three per cent decline in the March quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Auction clearances hit a ceiling

Original article by Michael Bleby
The Australian Financial Review – Page: 2 : 16-Sep-19

Data from Corelogic reveals that Sydney recorded a preliminary auction clearance rate of 80.3 per cent on 14 September, while Melbourne recorded a preliminary clearance rate of 75.7 per cent. Nationally, the preliminary auction clearance rate came in at 75.7 per cent, down from the previous weekend’s preliminary clearance rate of 77 per cent. Industry observers note that general fears about a weak economy are prompting potential vendors to hold back on listing their property.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Rundle Place deal ditched by Cromwell

Original article by Su-Lin Tan
The Australian Financial Review – Page: 34 : 13-Sep-19

Property group Cromwell has pulled out of a possible $250 million transaction to acquire Rundle Place in Adelaide from private equity company Blackstone. AMP Capital had previously passed up on the chance to purchase Rundle Place, which consists of a shopping centre and an 11-storey office tower, in June. Blackstone purchased Rundle Place for over $400 million dollars in early 2016.

CORPORATES
CROMWELL PROPERTY GROUP – ASX CMW, THE BLACKSTONE GROUP LP, AMP CAPITAL INVESTORS LIMITED

Mirvac, Stockland and Frasers eye Maribyrnong defence site

Original article by Su-Lin Tan
The Australian Financial Review – Page: 39 : 10-Sep-19

The federal government launched a campaign in October 2018 aimed at selling off the 127-hectare Maribyrnong Defence Site, located around 10 kilometres from the Melbourne CBD. Industry observers have stated the site could sell for as much as $500 million if there are no contamination issues with it. A masterplan for the site’s development is due to be released in October, while Stockland, Mirvac and Frasers Property Australia are understood to be three of the eight groups that have been shortlisted as possible purchasers of the site.

CORPORATES
MIRVAC GROUP – ASX MGR STOCKLAND – ASX SGP FRASERS PROPERTY AUSTRALIA PTY LTD

Clearance rates show a market in turnaround

Original article by Su-Lin Tan
The Australian Financial Review – Page: 6 : 9-Sep-19

Data from Corelogic reveals that Sydney recorded a preliminary auction clearance rate of 83.1 per cent on 7 September, while Melbourne recorded a preliminary clearance rate of 76.6 per cent. As in previous weeks, the number of homes listed for sale was over 20 per cent down in both cities when compared to the same time in 2018. Meanwhile, QBE’s latest Housing Outlook indicates that Sydney house prices will rise around 1.2 per cent in the year to June 2020, while Melbourne’s prices will be generally flat.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, QBE INSURANCE GROUP LIMITED – ASX QBE

Rebound is on: prices rise across the board

Original article by Mackenzie Scott
The Australian – Page: 5 : 3-Sep-19

New data from CoreLogic shows that house prices rose by 0.8 per cent nationally in August, which is the first increase since October 2017. CoreLogic’s latest Hedonic Home Value Index also shows that house prices in Sydney and Melbourne rose by 1.6 per cent and 1.4 per cent respectively in August, while Perth and Darwin were the only two capital cities to record a fall in house prices. Shane Oliver of AMP Capital says rising auction clearance rates suggest that house prices will continue to increase over the next 9-12 months.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, AMP CAPITAL INVESTORS LIMITED

Double-digit growth for Sydney, Melbourne

Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 29-Aug-19

SQM Research is upbeat about the residential property market, forecasting that Sydney house prices will increase by two per cent in the September 2019 quarter and four per cent in the December quarter. Data from SQM shows that asking prices in Sydney have risen by 5.6 per cent since the federal election in May. SQM MD Louis Christopher believes there is the potential for the residential market in Sydney and Melbourne to record double-digit growth in 2020.

CORPORATES
SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, SELECT RESIDENTIAL PROPERTY GROUP, CATE BAKOS PROPERTY

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