L67 Property Operators and Real Estate Services

The $2500 house deposit; high-risk mortgages return

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 1 & 6 : 14-Jul-14

The Australian Prudential Regulation Authority has made banks cut the number of mortgages they write that have high loan-to-valuation ratios (LVRs). However smaller and nonbank providers now offer LVRs of as high as 99.375%, causing concern about a situation similar to the sub-prime mortgages crisis in the US in 2007. A new joint venture by home construction businesses BGC and Metricon even advises buyers to rely both on the first-home owners’ grant and a personal loan to raise a 5% deposit, with as little as $A2,500 of their own money. Meanwhile residential real estate prices have risen some 10% during 2013-14

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BGC (AUSTRALIA) PTY LTD, METRICON HOMES, HIVE EMPIRE PTY LTD, DIGITAL FINANCE ANALYTICS, RP DATA LIMITED, CORELOGIC AUSTRALIA PTY LTD, RISMARK INTERNATIONAL PTY LTD, RESERVE BANK OF AUSTRALIA, RAMS MORTGAGE CORPORATION LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, THE LOAN COMPANY, MOODY’S INVESTORS SERVICE INCORPORATED, BANK OF ENGLAND

Sydney’s median rent for units hits $500

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Original article by Rebecca Thistleton
The Australian Financial Review – Page: 10 : 10-Jul-14

Australian Property Monitors has issued its latest data on residential real estate rents across state capital markets. In the three months to 30 June 2014, the rent for apartments in Sydney reached an all-time high of $A500. Standalone dwelling rents also went up in Melbourne and Sydney after a subdued period since mid-2012. However declines were recorded for Darwin and Canberra. Meanwhile gross rental yields are down across the board, with Perth showing the biggest falls at close to 9% for units and 5.8% for houses during 2013-14

CORPORATES
AUSTRALIAN PROPERTY MONITORS PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AMP LIMITED – ASX AMP, DOMAIN.COM.AU

Expedia told: lift rates, cop a backlash

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 42 : 10-Jul-14

A takeover offer worth $A703m has been made for Australian online travel bookings group Wotif.com by US-based Expedia. Local accommodation operators say they will increasingly turn to direct reservations via upgraded in-house web sites, if Expedia attempts to raise commission rates after the acquisition. At present Wotif charges about 12% and the Australian unit of Expedia 18%. Industry expert Dean Dransfield likens the warning by the hotel businesses to the revolt against increased fees at property classifieds portal REA Group by real estate agents

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, REA GROUP LIMITED – ASX REA, EXPEDIA AUSTRALIA PTY LTD, EXPEDIA INCORPORATED, MANTRA GROUP LIMITED – ASX MTR, ACCOR SA, DRANSFIELD HOTELS AND RESORTS PTY LTD

Vizeum sees no conflict in roles

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Original article by Darren Davidson
The Australian – Page: 19 : 9-Jul-14

Media buying agency Vizeum faces concerns that its representation of real estate agents breaches competition laws. It has confirmed that it is acting for Real Estate Digital Marketing Services to negotiate ad rates with online classifieds portal REA Group. Questions have been asked about the involvement of Norman Draper, who is linked to REA rival Domain. Vizeum said that there was no conflict of interests, as it was acting for a not-for-profit organisation

CORPORATES
REA GROUP LIMITED – ASX REA, VIZEUM, REAL ESTATE DIGITAL MARKETING SERVICES PTY LTD, DENTSU AEGIS NETWORK, DOMAIN.COM.AU, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, METRO MEDIA PUBLISHING PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, DEUTSCHE BANK AG

Boycott threat in advertising war

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Original article by Samantha Hutchinson
The Australian Financial Review – Page: 39 : 8-Jul-14

Real estate agents may decide to boycott certain services provided by Australian-listed online classifieds group REA if no agreement is reached on charges. Media buying group Real Estate Digital Marketing Services (REDMS) stated on 7 July 2014 that it sought a meeting with REA, but the latter refused to discuss the matter of fees charged by its realestate.com.au portal. REDMS represents more than 400 Victoria-based agents

CORPORATES
REA GROUP LIMITED – ASX REA, NEWS CORPORATION – ASX NWS, REAL ESTATE DIGITAL MARKETING SERVICES PTY LTD, VIZEUM, FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN PROPERTY GROUP, METRO MEDIA PUBLISHING PTY LTD, BIGGIN AND SCOTT PTY LTD

Sydney, Melbourne house prices rebound in June

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Original article by Michael Bleby, Jacob Greber
The Australian Financial Review – Page: 6 : 30-Jun-14

New figures from RP Data show rises in the residential real estate auction clearance rates for the Sydney and Melbourne markets on the 28-29 June 2014 weekend. In Sydney the week-on-week increase was from 70.1% to 73.2% and in Melbourne it was from 69.1% to 69.3%. Meanwhile the median dwelling price in Sydney has also improved 1.5% during June, compared with a fall of 1.1% in May. In Melbourne it is up 1.7% after a drop of 3.6% previously. There are some warnings that a further rapid increase may create a threat for the economy and trigger higher interest rates

CORPORATES
RP DATA LIMITED, CORELOGIC AUSTRALIA PTY LTD, DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR APPLIED MACRO-ECONOMIC ANALYSIS

Revolt against REA price gouging growing

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Original article by Samantha Hutchinson
The Australian Financial Review – Page: 15 : 25-Jun-14

Melbourne real estate agents are challenging the high prices charged by online property classifieds portal realestate.com.au. A group of 300 real estate agencies are angry about successive price rises. They have appointed a media buyer to negotiate with owner REA Group for fairer advertising rates. It is thought that Vizeum Australia will represent the group, which will be known as Real Estate Digital Marketing Services

CORPORATES
REA GROUP LIMITED – ASX REA, VIZEUM AUSTRALIA PTY LTD, AEGIS MEDIA AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, THE REAL ESTATE INSTITUTE OF VICTORIA LIMITED, REALESTATEVIEW.COM.AU LIMITED, RIGHT CLICK CAPITAL MANAGEMENT PTY LTD, CENTURY 21 REAL ESTATE, KAY AND BURTON, RAY WHITE REAL ESTATE, HOCKING STUART PTY LTD, MARSHALL WHITE AND COMPANY PTY LTD, BIGGIN AND SCOTT PTY LTD

Pendulum sways to ‘Yes’

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Original article by Robert Harley
The Australian Financial Review – Page: 34 : 20-Jun-14

Westfield Retail Trust investors are expected to approve a restructuring of the group at a meeting on 20 June 2014. A vote on the proposed deal was postponed earlier in the month, when 25.9 per cent of proxy votes rejected the plan to merge the trust with the Australasian property portfolio of Westfield Group. Westfield Retail securities closed $A0.04 higher at $A3.21 on 19 June

CORPORATES
WESTFIELD RETAIL TRUST – ASX WRT, WESTFIELD GROUP – ASX WDC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, UNISUPER LIMITED, LEGG MASON ASSET MANAGEMENT AUSTRALIA LIMITED, COLONIAL FIRST STATE GROUP LIMITED, COLONIAL HOLDING COMPANY LIMITED – ASX CNG

Westfield shares rise on merger hopes

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Original article by Robert Harley
The Australian Financial Review – Page: 35 : 18-Jun-14

Westfield Retail Trust shareholders will vote on the proposed restructuring of the Westfield group of companies on 20 June 2014. Several major shareholders are expected to vote in favour of the deal, which is likely to ensure that it proceeds. However, Stephen Mayne of the Australian Shareholders’ Association forecasts that the deal will not be approved. Westfield Retail shares closed $A0.06 higher at $A3.21 on 17 June, while Westfield Group was up $A0.28 at $A10.89

CORPORATES
WESTFIELD GROUP – ASX WDC, WESTFIELD RETAIL TRUST – ASX WRT, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Mall refits maintain low Melbourne retail vacancies

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 34 : 13-Jun-14

Data from CBRE indicates that the vacancy rate for prime and super prime retail properties in the Melbourne CBD was 1.45 per cent in June 2014. Net rents were steady in the year to June, while outlets such as clothing and shoe stores comprised about 26 per cent of tenants

CORPORATES
CBRE PTY LTD, HERRON TODD WHITE AUSTRALIA PTY LTD, HENNES OCH MAURITZ AB, LASALLE INVESTMENT MANAGEMENT INCORPORATED, DEXUS PROPERTY GROUP – ASX DXS