L67 Property Operators and Real Estate Services

Top-end markets bear the brunt

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Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 31 : 2-Oct-18

CoreLogic’s latest data indicate that there is greater resilience in the more affordable segments of Australia’s residential property market. House prices in the bottom quarter of the Melbourne market rose by 4.1 per cent year-on-year, while they fell by just 3.3 per cent in Sydney’s bottom quartile. However, prices in Sydney and Melbourne’s top quartiles fell by 8.4 per cent and 6.7 per cent respectively. Tim Lawless of Corelogic says demand is becoming focused on the more affordable housing segments as banks become more cautious about borrowers taking on too much debt.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, CAPITAL ECONOMICS LIMITED, RAY WHITE REAL ESTATE

ME boss tips two years of house price weakness

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Original article by James Frost
The Australian Financial Review – Page: 17 : 25-Sep-18

ME Bank has reported a statutory net profit of $89.1m, which is 43.9 per cent higher than previously, while its underlying earnings rose 13 per cent to $96.5m. CEO Jamie McPhee does not expect a significant fall in house prices, although he says prices are likely to ease slightly over the next two years. McPhee adds that the revelations of the banking royal commission do not appear to have had much impact on ME Bank’s customer numbers and deposit inflows.

CORPORATES
ME BANK, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Aged-care operators feel sting of royal commission

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Original article by Turi Condon
The Australian – Page: 17 & 27 : 18-Sep-18

Shares in aged-care operators plunged on 17 September, following the announcement by the federal government that it would hold a royal commission into the sector. Japara Healthcare, Estia Health and Regis Healthcare shed more than 17 per cent apiece. Leading Age Services Australia CEO Sean Rooney said he supports the royal commission, but denied suggestions that the sector has engaged in price gouging.

CORPORATES
JAPARA HEALTHCARE LIMITED – ASX JHC, REGIS HEALTHCARE LIMITED – ASX REG, ESTIA HEALTH LIMITED – ASX EHE, LEADING AGE SERVICES AUSTRALIA LIMITED, LEND LEASE GROUP LIMITED – ASX LLC, STOCKLAND – ASX SGP, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AVEO GROUP – ASX AOG

Sydney to lead subsidence in house prices, says Moody’s

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 37 : 18-Sep-18

Moody’s Analytics has forecast a 1.6 per cent fall in housing prices across Australia in 2018. The firm expects house prices in Sydney to decline by 5.1 per cent overall, although some suburbs will record larger declines while others will record growth. House prices in Melbourne are forecast to rise by 0.3 per cent in 2018, with Brisbane tipped to record growth of 1.5 per cent and prices in Perth to fall by 1.9 per cent. The forecasts are based on historical data from CoreLogic’s Hedonic Home Value Index.

CORPORATES
MOODY’S ANALYTICS AUSTRALIA PTY LTD, CORELOGIC AUSTRALIA PTY LTD, MORRELL AND KOREN BUYERS’ ADVOCATES

Big city house prices to drop 5pc: Steinert

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 17-Sep-18

Stockland CEO Mark Steinert has forecast that house prices in Sydney and Melbourne will fall by around five per cent over the next 12 months. However, the expected decline is likely to be primarily restricted to the higher end of the detached housing market, a view shared by Mirvac CEO Susan Lloyd-Hurwitz. Data from CoreLogic shows that the prices of detached houses in Sydney fell by 7.1 per cent in the year to August, compared with a 2.7 per cent decline in Melbourne.

CORPORATES
STOCKLAND – ASX SGP, MIRVAC GROUP – ASX MGR, CORELOGIC AUSTRALIA PTY LTD, GPT GROUP – ASX GPT, CBUS PROPERTY PTY LTD, VICINITY CENTRES – ASX VCX, PROPERTY COUNCIL OF AUSTRALIA LIMITED, BIS OXFORD ECONOMICS PTY LTD

A $49m pay day for Harold Mitchell in sale of former HQ

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Original article by Nick Lenaghan
The Australian Financial Review – Page: Online : 13-Sep-18

Crown Resorts director Harold Mitchell has sold the office building that he had built for his advertising company Mitchell Communications Group in 2010 for $49 million. Mitchell founded the company in 1976 and sold it to Dentsu Aegis in the same year that the building was constructed. Dentsu Aegis currently occupies the building, and has a lease on it until 2021. The building, which is located at 105 York Street in South Melbourne, was bought by a private investor.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, MITCHELL COMMUNICATION GROUP LIMITED, DENTSU AEGIS MEDIA AUSTRALIA PTY LTD, CBRE PTY LTD

Victoria says it will cut power bottlenecks to speed up housing development

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Original article by Michael Bleby
The Australian Financial Review – Page: Online : 12-Sep-18

The Urban Development Institute of Australia has welcomed an agreement between the Victorian government and power companies. The agreement will see the provision of electricity connections to new housing developments accelerated, with the companies involved in the agreement including Jemena, United Energy and Citipower. UDIA Victorian executive director Danni Anderson notes that people cannot live in homes without power, and that the agreement will speed up house production in Victoria.

CORPORATES
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA, JEMENA ELECTRICITY NETWORKS (VIC) LIMITED, UNITED ENERGY DISTRIBUTION PTY LTD, CITIPOWER LIMITED, AUSNET SERVICES HOLDINGS PTY LTD – ASX ANV, POWERCOR AUSTRALIA LIMITED, VICTORIA. DEPT OF TREASURY AND FINANCE, VICTORIA. ESSENTIAL SERVICES COMMISSION

Units are now selling faster than houses in downturn-hit Sydney

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Original article by Michael Bleby
The Australian Financial Review – Page: Online : 11-Sep-18

Domain figures reveal that homes and apartments in Sydney were both on the market for an average of 67 days in August. The figure for homes represents an increase of 20 days when compared to the same time in 2017, while apartments were only taking nine more days to sell. Homes in Melbourne were taking an average of 55 days to sell in August, compared to 44 in August 2017. Melbourne apartments were taking an average of 77 days to sell in August, down from 88 days for the same time in 2017.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, WESTPAC BANKING CORPORATION – ASX WBC

Victoria’s urban growth suburbs rise more than 40pc

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Original article by Nick Lenaghan
The Australian Financial Review – Page: Online : 7-Sep-18

Municipalities in Melbourne’s south-east and south-west "growth corridors" have seen the biggest increase in land values following the latest municipal revaluations in Victoria. Land values in Frankston rose by 42 per cent, while values in Casey and Wyndham rose by close to 40 per cent. Factors that pushed up values in "growth corridors" included proximity to schools and first-home buyer incentives. The date used for the revaluation was 1 January, with the total value of all land in Victoria – residential, industrial, commercial and rural – increasing from $1.88 trillion to $2.3 trillion.

CORPORATES
LAND VICTORIA

Top 500 companies: booming housing construction boosts builders

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Original article by Michael Bleby
The Australian Financial Review – Page: Online : 6-Sep-18

Property and construction companies feature prominently towards the top of the latest list of Australia’s top 500 private companies. Meriton and BGC were in fifth and sixth place, as they were for the previous year, while Brisbane-based Hutchinson Builders rose two places to seventh. Its revenue rose 14.7 per cent to $2.65 billion, with revenue up 20 per cent in both Sydney and Melbourne. Metricon finished at 22nd place in the list, up from 48th place in 2017, while Built rose from 43rd place to 25th.

CORPORATES
MERITON APARTMENTS PTY LTD, BGC (AUSTRALIA) PTY LTD, HUTCHINSON BUILDERS, METRICON HOMES, BUILT PTY LTD, STOCKLAND – ASX SGP, RICHARD CROOKES CONSTRUCTIONS PTY LTD, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR