L67 Property Operators and Real Estate Services

Townhouses rise as approvals fall

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Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 31-Aug-18

New building approvals fell by 5.2 per cent in seasonally adjusted terms in July when compared to June, according to official figures released on 30 August. Approvals for detached dwellings declined in all mainland states except Queensland, while townhouse approvals increased by 3.9 per cent. Townhouse approvals for the 12 months to July totalled 36,423, compared to 34,256 approvals for the 12 months to August 2016. In comparison, approvals for high-rise apartments have declined from 76,947 in the 12 months to August 2016 to 65,478 in the 12 months to July 2018.

CORPORATES
POLY GROUP CORPORATION, JP MORGAN AUSTRALIA LIMITED, STOCKLAND – ASX SGP

High prices to drive spring rural listings

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Original article by Matthew Cranston
The Australian Financial Review – Page: 32 : 27-Aug-18

The drought does not seem to have had too much impact on the value of farm properties in New South Wales, with values in some areas rising by 30 per cent over the past 12 months. Andrew Street of Landmark Harcourts says there is a lot of interest in cotton properties at the moment. Sam Hempinstall of Michael Keating International expects demand for Victorian rural estate to exceed supply during the 2018 spring, with good interest coming from both Asia and Europe.

CORPORATES
LANDMARK HARCOURTS PTY LTD, MICHAEL KEATING INTERNATIONAL PTY LTD, ELDERS LIMITED – ASX ELD, LABOUR PARTY (NEW ZEALAND)

Labor win a housing game changer

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Original article by Sarah Turner
The Australian Financial Review – Page: 8 : 23-Aug-18

Brett Gillespie of Ellerston Capital says financial markets are not giving much consideration to the possibility that Labor will win the next federal election. He notes that a Labor government would have a major impact on the property market, given that Labor proposes to restrict negative gearing to new homes. Gillespie adds that a Labor win would also have implications for the sharemarket and the broader economy.

CORPORATES
ELLERSTON CAPITAL PTY LTD, AUSTRALIAN LABOR PARTY, BELL POTTER SECURITIES LIMITED, PERPETUAL LIMITED – ASX PPT, REA GROUP LIMITED – ASX REA, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, McGRATH LIMITED – ASX MEA, BORAL LIMITED – ASX BLD, CSR LIMITED – ASX CSR, FLETCHER BUILDING LIMITED – ASX FBU, ADELAIDE BRIGHTON LIMITED – ASX ABC, DULUXGROUP LIMITED – ASX DLX, GWA GROUP LIMITED – ASX GWA, BLUESCOPE STEEL LIMITED – ASX BSL, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, LEND LEASE GROUP LIMITED – ASX LLC, MIRVAC GROUP – ASX MGR, STOCKLAND – ASX SGP, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

McGrath writes off all goodwill

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 35 : 21-Aug-18

Listed real estate agency McGrath has reported a net loss of $63 million for 2017-18, which includes an impairment expense of $59 million after writing off its entire goodwill. McGrath recorded EBITDA of $1 million, while revenue fell by 23 per cent to $99 million. Its full-year fees from property management were down, with the number of properties managed by company-owned agencies declining from 7,463 to 7,215.

CORPORATES
McGRATH LIMITED – ASX MEA

NSW bans high-content PE cladding over fire risk

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Original article by Michael Bleby
The Australian Financial Review – Page: 33 : 14-Aug-18

The New South Wales Government has cracked down on the use of combustible cladding materials in the construction industry. The use of aluminium panels with a core of more than 30 per cent polyethylene will be banned outright, with the regulation to apply to both new and existing buildings. Building certifier David Blackett has expressed reservations about the government’s decision to give local councils responsibility for the risk assessment process.

CORPORATES
NEW SOUTH WALES. DEPT OF COMMERCE. OFFICE OF FAIR TRADING, VICTORIA. DEPT OF ENVIRONMENT, LAND, WATER AND PLANNING

House prices fall 1.6pc in biggest decline in six years: Corelogic

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Original article by Su-Lin Tan
The Australian Financial Review – Page: Online : 2-Aug-18

Corelogic has reported that Australian house prices have fallen by 1.6 per cent in the year to July, with Sydney leading the way with a decline of 5.4 per cent. The yearly fall is the largest since 2012. Melbourne recorded the biggest drop in house prices for the three months to July, with a fall of 1.8 per cent, while it also posted the biggest fall for July (down 0.9 per cent). Tim Lawless from Corelogic expects the decline in prices to continue over the second half of 2018.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Slowdown in east coast housing gathers speed

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Original article by Michael Bleby
The Australian Financial Review – Page: 33 : 26-Jul-18

Data from Domain Holdings shows that Australia’s median house price fell by one per cent to $802,077 in the June 2018 quarter. The median house price in Sydney eased 1.4 per cent in the quarter, to $1,144,217, with the median unit price down 0.5 per cent quarter-on-quarter. Sydney’s median house price was 4.5 per cent lower in the year to June, with the median unit price down 3.5 per cent. Meanwhile, the median house price in Melbourne fell by 1.8 per cent quarter-on-quarter, although it rose 0.5 per cent year-on-year.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, CORELOGIC AUSTRALIA PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

Tough times for builders: housing starts to fall 22pc

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Original article by Michael Bleby
The Australian Financial Review – Page: 32 : 23-Jul-18

The Housing Industry Association had forecast in February that housing starts will decline to 174,880 in 2020. BIS Oxford Economics in turn has predicted that housing starts will fall from 2018’s estimated figure of 219,000 to 171,350 in 2020, equating to a 22 per cent fall. The forecast decline in housing starts is expected to be led by a significant downturn in the construction of high-density dwellings. There have been a number of building company failures in recent months, the latest being home renovator Dowling Homes.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED, BIS OXFORD ECONOMICS PTY LTD, DOWLING HOMES, BRI FERRIER PTY LTD, BAYSIDE CONSTRUCT, PROJECT GROUP, WATERSUN HOMES

NAB cuts house price forecasts for two years

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Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 13-Jul-18

National Australia Bank has revised its housing price forecasts for 2018 and 2019. The bank now expects house prices to fall by 1.8 per cent in 2018, compared to the 0.8 per cent decline it had forecast in April. NAB also predicts that the price of detached dwellings will fall by 0.1 per cent in 2019, having previously forecast an 0.8 per cent rise. It has also reported that property investor confidence has declined to a two-year low, while a recent ANZ/Property Council survey reported that the availability of housing finance has slumped over the past three months.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

House prices now set for sustained decline

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Original article by Matthew Cranston
The Australian Financial Review – Page: 31 : 12-Jul-18

A survey by the ANZ Bank and the Property Council of Australia has found that confidence in the nation’s residential property market has fallen sharply. The national survey of property professionals shows that there has been a significant rise in the number of respondents who expect a further decline in house prices, particularly in Sydney and Melbourne. Respondents were also bearish regarding the availability of finance, and ANZ’s David Plank says this suggests that building approvals will fall in the next 6-12 months.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, MIRVAC GROUP – ASX MGR, STOCKLAND – ASX SGP