L67 Property Operators and Real Estate Services

Boom ends as clearances ‘set for 70pc’

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Original article by Mercedes Ruehl, Robert Harley, Su-Lin Tan
The Australian Financial Review – Page: 3 : 21-Sep-15

Preliminary figures from RP Data show that Sydney’s residential property market boasted an auction clearance rate of 73 per cent on the weekend of 19-20 September 2015. Andrew Wilson of Domain Group says the spring clearance rate in Sydney has fallen to a three-year low, adding that it could soon fall below 70 per cent. The preliminary clearance rate in Melbourne was also 73 per cent.

CORPORATES
RP DATA LIMITED, DOMAIN.COM.AU, COOLEY AUCTION SERVICES PTY LTD, BELLE PROPERTY PTY LTD, STARRYLAND (AUSTRALIA) PTY LTD, CBRE PTY LTD, WAKELIN PROPERTY ADVISORY

Retail gets highest marks in REIT reporting season

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Original article by Matthew Cranston
The Australian Financial Review – Page: 40 : 16-Sep-15

Analysis by CLSA shows that the operating income of Australian retail-focused real estate investment trusts rose by 2.9 per cent during the August 2015 reporting season. This compares with growth of 2.2 per cent for industrial property trusts and 1.5 per cent for those with a focus on the office market. Michael Scott of CLSA is upbeat about the outlook for retail REITs, citing factors such as the improving outlook for retail sales.

CORPORATES
CSM AUSTRALIA, SCENTRE GROUP – ASX SCG, FEDERATION CENTRES – ASX FDC, WESTFIELD CORPORATION – ASX WFD, STOCKLAND – ASX SGP, MIRVAC GROUP – ASX MGR, GOODMAN GROUP – ASX GMG, CHARTER HALL GROUP – ASX CHC, DEXUS PROPERTY GROUP – ASX DXS

Chinese retreat from property in Australia

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Original article by Lisa Murray, Angus Grigg
The Australian Financial Review – Page: 3 : 15-Sep-15

The introduction of tighter foreign exchange rules in China has had a negative effect on Chinese investments in Australia’s property sector. Fewer Chinese are now able to apply for the Federal Government’s Significant Investor Visa (SIV) scheme. Eligibility is restricted to those able to invest at least $A5 million in Australian assets such as venture capital and emerging companies. Only seven SIV applications have been made since 1 July 2015.

CORPORATES
PEOPLE’S BANK OF CHINA, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Chinese face big losses as $A falls

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 39 : 14-Sep-15

Basis Point estimates that the sharp decline in the value of the Australian dollar since late 2014 has cost Chinese investors about $A12bn. Basis Point’s David Chin notes that investors in residential property who have already settled the deal will have lost money. However, investors in off-the-plan apartments that have not yet been settled will benefit from the currency’s decline.

CORPORATES
BASIS POINT CONSULTING, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Rental growth slows to 20-year low

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Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 11-Sep-15

CoreLogic RP Data has reported that growth in asking rents for residential properties across Australia fell by 0.4 per cent overall in August 2014, compared with a 0.3 per cent fall in July. Growth in asking rents eased to 0.7 per cent year-on-year. Sydney was the only capital city to record a rise in asking rents during August. Cameron Kusher of CoreLogic RP Data cites factors such as slowing population growth and continued strong construction activity.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Talk of GST increase spooks industry leaders

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Original article by Robert Harley
The Australian Financial Review – Page: 36 : 10-Sep-15

An increase in the rate of Australia’s goods and services tax (GST) would have a negative impact on the property sector. Matthew Cridland, GST partner at law firm DLA Piper, warns in a briefing document that less supply could be expected from housing developers and retirement village operators if the GST rises to 15 per cent. Shopping centres would also be negatively influenced.

CORPORATES
DLA PIPER, PROPERTY COUNCIL OF AUSTRALIA LIMITED, ACIL ALLEN CONSULTING PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

Lower $A will intensify two-tier property market

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 7 : 4-Sep-15

The lower Australian dollar may lead to greater interest in Australian property from foreign buyers and, consequently, to higher prices. Valuer Herron Todd White says the importance of local demand is diminishing. Real estate developers concentrate their marketing efforts on overseas investors. This trend is clearly visible in unit developments in Sydney such as Zetland, Waterloo, Rosebery, Mascot, Botany, Hurstville and Wolli Creek.

CORPORATES
HERRON TODD WHITE AUSTRALIA PTY LTD, DEUTSCHE BANK AG

Retail A-REIT rejig mix to safeguard earnings

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 38 : 3-Sep-15

Earnings growth was driven by specialty tenants such as cinemas, fashion and food, according to listed retail property trusts. Fund managers predicted further attention to the tenant mix in malls to enhance portfolio quality. Attracting global brands also remained a focus.

CORPORATES
CHARTER HALL RETAIL REIT – ASX CQR, FEDERATION CENTRES – ASX FDC, NOVION PROPERTY GROUP, SCENTRE GROUP – ASX SCG, ALDI STORES SUPERMARKETS PTY LTD, COLES GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, WESTFIELD CORPORATION – ASX WFD, BWP TRUST – ASX BWP, BUNNINGS GROUP LIMITED

Mall owners plan $8b of work to drive better returns

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Original article by Robert Harley
The Australian Financial Review – Page: 35 : 2-Sep-15

CBRE estimates that the Australian-listed real estate investment trusts will invest $A8 billion in redevelopment and extension of regional shopping centres and central business district retail outlets in the next five years. Redevelopments at Pacific Fair on the Gold Coast, Chadstone in Victoria and the Castle Towers shopping centre in New South Wales are particularly significant.

CORPORATES
CBRE PTY LTD, AMP CAPITAL INVESTORS LIMITED, SCENTRE GROUP – ASX SCG, GANDEL GROUP HOLDINGS LIMITED, FEDERATION CENTRES – ASX FDC, QIC LIMITED

Shortfall in Sydney housing predicted

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Original article by Michael Bleby
The Australian Financial Review – Page: 42 : 27-Aug-15

Sydney is likely to experience a housing shortfall of 197,050 homes by 2024. AECOM technical director Joe Langley wrote in a submission to parliament’s inquiry into home ownership that there is not enough coordination between the activities of state transport, finance and treasury agencies. Housing creation should be aligned with public transport projects.

CORPORATES
AECOM AUSTRALIA PTY LTD, JACOBS ENGINEERING GROUP INCORPORATED, FLEISHER SMYTH BROKAW, COMMITTEE FOR MELBOURNE