L67 Property Operators and Real Estate Services

Homes in 33pc of Sydney now twice the price

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Original article by Nila Sweeney
The Australian Financial Review – Page: 32 : 23-Aug-23

Data from CoreLogic shows that the prices of homes in 12.1 per cent of suburbs across Australia have doubled over the last decade. However, the value of units has increased by a similar amount in just two per cent of suburbs nationwide. CoreLogic’s figures also show that house prices in 163 suburbs in Sydney have more than doubled in the last decade, led by South Turramurra with a gain of 151 per cent in the last 10 years. Meanwhile, Melbourne house prices have doubled in the Mornington Peninsula suburbs of Dromana, Frankston North and Sorrento.

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CORELOGIC AUSTRALIA PTY LTD

New home approvals fall to weakest in four years

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 2-Aug-23

Data from the Australian Bureau of Statistics shows that there was a 7.7 per cent decline in new housing approvals in June. A total of 175,790 new dwellings were approved in the year to 30 June, with approvals for detached dwellings falling by 13.8 per cent and attached homes down by 10.5 per cent. Maree Kilroy of Oxford Economics Australia says demand and supply for housing are moving in opposite directions, which will result in a sizeable dwelling deficiency over the coming years. Separate data shows that new home loan commitments fell by 22.1 per cent to $298.4bn in 2022-23.

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AUSTRALIAN BUREAU OF STATISTICS, OXFORD ECONOMICS AUSTRALIA PTY LTD

Housing market on knife edge despite rate pause

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 & 32 : 5-Jul-23

SQM Research MD Louis Christopher expects sentiment in the housing market to remain cautious in the near-term, despite the Reserve Bank’s latest interest rate pause. He is of the view that sentiment will not improve until there is a longer pause. Shane Oliver from AMP Capital anticipates that any upturn in housing market activity arising from the second interest rate pause since April is likely to be temporary. He adds that further interest rate increases could put renewed downward pressure on house prices.

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RESERVE BANK OF AUSTRALIA, SQM RESEARCH PTY LTD, AMP CAPITAL INVESTORS LIMITED

Higher rates are unlikely to erase house price gains

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Original article by Nila Sweeney
The Australian Financial Review – Page: 30 : 15-Jun-23

Data from CoreLogic shows that house prices rose by 2.3 per cent nationally over the last three months, including 1.2 per cent in May. HSBC’s chief economist Paul Bloxham says factors such as rising interest rates and a slowing economy may affect the pace of growth in house prices but are unlikely to see the market retreat. The ANZ Bank’s senior economist Felicity Emmett notes that factors such as limited supply and strong demand due to immigration is putting upward pressure on housing prices, and this is likely to continue in the near-term.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

‘Scary’: Mortgage costs reach critical threshold

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Original article by Nila Sweeney
The Australian Financial Review – Page: 9 : 7-Jun-23

SQM Research’s MD Louis Christopher says the probability of a ‘double dip’ downturn in Australia’s housing market has increased to more than 60 per cent following the Reserve Bank’s decision to increase the cash rate to 4.1 per cent. He notes that SQM’s research in late 2022 found that loan book managers identified a cash rate of about four per cent as the ‘line in the sand’ where many homeowners may be forced to sell. Christopher notes that the number of distressed listings is still quite low, but cautions that this may change as the full impact of the recent rate rises flows through to mortgage holders.

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SQM RESEARCH PTY LTD

Shrinking pipeline for attached homes hits hard

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Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 31-May-23

The latest official building approvals data highlights the growing supply crisis in Australia’s housing market. The figure show that just 3,545 new apartments, townhouses and semi-detached homes were approved in April, which is the lowest level since January 2012. Approvals for detached homes fell by 3.6 per cent month-on-month to 8,049. A total of 11,594 dwellings of all types were approved in April, which is an 11-year low. Maree Kilroy of Oxford Economics Australia says a sharp downturn is under way and the firm does not expect dwelling approvals to rebound until late 2024.

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OXFORD ECONOMICS AUSTRALIA PTY LTD

Rate pause to spur buyers back into market

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Original article by Nila Sweeney
The Australian Financial Review – Page: 31 : 5-Apr-23

SQM Research MD Louis Christopher says the firm believes that the cash rate has peaked following the Reserve Bank’s decision to leave it on hold at 3.6 per cent on Tuesday. He adds that the widely-anticipated rate pause could prompt buyers to return to the housing market, including renters and investors. Christopher adds that house prices could rise by 3-7 per cent nationwide in 2023 if the cash rate remains on hold. Tim Lawless of CoreLogic agrees that the rate pause could encourage vendors and buyers to return to the market.

CORPORATES
SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA

Bank of mum and dad the biggest factor in young Australians entering property market, research finds

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Original article by Abhranil Hazra
The Guardian Australia – Page: Online : 22-Mar-23

Research undertaken by the Australian Housing & Urban Research Institute shows that financial assistance from their family has become crucial for many younger Australians to buy their own home. The research found that some 40 per cent of Australians in the 25-34 age group expect to rely on money from their parents to help them to buy a home. Lead researcher Laurence Troy says people without access to such financial support could potentially be locked out of home ownership. The survey also found that unstable and low incomes are a major hurdle to saving for a house deposit.

CORPORATES
AUSTRALIAN HOUSING AND URBAN RESEARCH INSTITUTE

Fall in house prices stalls but reprieve may be short-lived

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Original article by Rachel Clun, Shane Wright
The Sydney Morning Herald – Page: Online : 1-Mar-23

Data from CoreLogic shows that home values fell by just 0.14 per cent nationwide in February, which is the lowest decline since the Reserve Bank of Australia began to increase the cash rate in May 2022. Sydney was the only capital city to record a rise in house values in February, up 0.3 per cent; however, house values fell by less than 0.5 per cent in all other capitals except Hobart, which recorded a decline of 1.4 per cent. Tim Lawless of CoreLogic warns that the decline in house values may accelerate as the full impact of nine consecutive interest rate rises takes effect.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Target of million new homes by end of decade in jeopardy

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Original article by Mackenzie Scott
The Australian – Page: 6 : 7-Feb-23

Master Builders Australia CEO Denita Wawn says the nation’s construction industry is not building enough new homes to meet demand. The MBA has forecast that just 169,630 new homes will be built nationwide in 2022-23, well below the 200,000 that are needed each year to meet population demand. The MBA does not expect the annual new home build to reach the 200,000 threshold until 2026-27. The MBA’s forecasts will cast doubt on the federal government’s target of one million new homes in the five years from July 2024.

CORPORATES
MASTER BUILDERS AUSTRALIA INCORPORATED