L67 Property Operators and Real Estate Services

Negative gearing not to blame

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

Negative gearing not to blame

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

Airbnb popularity with landlords puts squeeze on rental market

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Original article by Misa Han
The Australian Financial Review – Page: 3 : 28-Nov-16

The number of homes in Sydney’s central and eastern suburbs that are listed as short-stay accommodation on Airbnb now significantly exceeds the number of residential properties that are available to rent. Data from the University of Sydney’s Urban Housing Lab also shows that property owners can earn significantly more each month by letting their homes via Airbnb rather than seeking longer-term rental tenants.

CORPORATES
AIRBNB AUSTRALIA PTY LTD, UNIVERSITY OF SYDNEY, HEYTOM

Investor home loans on the rise as building approvals hit peak

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 11-Nov-16

Lending to residential property investors increased by 4.6 per cent to $A12.4 billion in September 2016, from the previous month. Lending to owners-occupiers, excluding refinancing of existing mortgages, declined slightly to $A13 billion. Jo Masters, a senior economist at the ANZ Bank, says house prices continue to rise, auction clearance rates are high and building approvals are also high, but this trend may not be sustainable.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH SECURITIES LIMITED, AUSTRALIAN CONSTRUCTION INDUSTRY FORUM, HOUSING INDUSTRY ASSOCIATION LIMITED

Shock win ‘will boost local real estate sales’

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Original article by Scott Murdoch
The Australian – Page: 4 : 10-Nov-16

Donald Trump’s US presidential victory is likely to result in an interest rate rise in the US, increasing the likelihood of a cut in Australia’s 1.5 per cent official cash rate. LJ Hooker’s head of research Matthew Tiller says foreign investors will be less willing to invest in US property, and Chinese buyers in particular are likely to switch to Australia.

CORPORATES
LJ HOOKER (AUSTRALIA) PTY LTD, REPUBLICAN PARTY (UNITED STATES), REA GROUP LIMITED – ASX REA, RESERVE BANK OF AUSTRALIA

Sydney houses cement price growth

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 4 : 2-Nov-16

Data from CoreLogic shows that house prices in Sydney increased by 10.2 per cent year-on-year in October 2016. House prices in Sydney also rose by more than 10 per cent year-on-year in September, after recording single-digit growth since February. Tim Lawless of CoreLogic says the Reserve Bank is likely to adopt a cautious approach to further easing of monetary policy due to rising house prices and high auction clearance rates in Sydney and Melbourne.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, SQM RESEARCH PTY LTD, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED

Scene set for Kidman bidding war

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Original article by Kylar Loussikian, Sue Neales
The Australian – Page: 4 : 28-Oct-16

Directors of S. Kidman & Company have endorsed a $A386.5m offer for the pastoral business from Gina Hancock’s Hancock Prospecting and China-based Shanghai CRED. However, the BBHO consortium has signalled that its $A386m offer could potentially be increased. The Hancock-Shanghai CRED deal must be approved by the Foreign Investment Review Board, and Rinehart has indicated that Hancock will acquire full ownership of Kidman if the joint bid is rejected. BBHO has emphasised the all-Australian nature of its bid.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, HANCOCK PROSPECTING PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, BBHO, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, ONE NATION PARTY, NICK XENOPHON TEAM, GLOBAL FARMLAND FUND, SHANGHAI PENGXIN GROUP COMPANY LIMITED

Different rules for Rinehart, say farmers

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Original article by Sue Neales
The Australian – Page: 5 : 25-Oct-16

BBHO syndicate member Sterling Buntine fears that its $A386 million bid for S. Kidman & Company will not be treated fairly by the board. Buntine stressed that a rival bid from Gina Rinehart’s Hancock Prospecting and Shanghai CRED is inferior on two counts, namely being lower at $A365 million and requiring approval from the Foreign Investment Review Board.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, HANCOCK PROSPECTING PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, BBHO

Property sentiment strengthens despite negatives

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Original article by Robert Harley
The Australian Financial Review – Page: 41 : 13-Oct-16

The ANZ/Property Council Survey of real estate and construction industry sentiment for the third quarter of 2016 shows an improvement of two percentage points in confidence. A net 29 per cent of property and construction executives and investors are optimistic about the prospects for the property sector over the next 12 months, compared with 27 per cent in the previous quarter. An improvement in confidence occurred in all states except Queensland and South Australia.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH

Rinehart swoops on Kidman

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Original article by David Crowe, Sarah-Jane Tasker
The Australian – Page: 1 & 2 : 10-Oct-16

Australian businesswoman Gina Rinehart has submitted a $A365m bid to acquire S Kidman & Company in partnership with China-based Shanghai CRED. Rinehart’s Hancock Prospecting would have a 67 per cent stake in the rural property empire, a move that has the support of Senator Nick Xenophon and One Nation’s Pauline Hanson. Shanghai CRED was a member of the Chinese consortium whose bid to acquire Kidman was blocked on national interest grounds earlier in 2016.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, HANCOCK PROSPECTING PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, NICK XENOPHON TEAM, ONE NATION PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DAKANG AUSTRALIA HOLDINGS PTY LTD, PORT ADELAIDE FOOTBALL CLUB