L67 Property Operators and Real Estate Services

Housing market hits record $9.9 trillion

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Original article by Nila Sweeney
The Australian Financial Review – Page: 39 : 16-Mar-22

The Australian Bureau of Statistics estimates that the total value of the nation’s housing stock rose to a new high of $9.9 trillion in the December quarter. This is $512.6 billion higher than in the previous three months, with growth of 4.7 per cent in national dwelling values. Brisbane recorded 9.6 per cent growth in housing values during the December quarter, while Adelaide and Melbourne recorded growth of 6.8 per cent and 3.9 per cent respectively; however, growth in Sydney slowed to 4.1 per cent. Meanwhile, dwelling prices rose by 23.7 per nationally in the year to December.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Warning of city unit shortage as migrants return

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Original article by Mackenzie Scott
The Australian – Page: Online : 7-Jan-22

Housing Industry Association chief economist Tim Reardon suggests the lack of recent new development of city apartments will become evident in 2022 as Australia’s national borders reopen and migrants and international students return. Australian Bureau of Statistic figures reveal that just 76,000 townhouses and apartments were approved in the year to October, some 12 per cent below the decade average. Residential housing development has been more popular than higher-density living options like apartments and townhouses during the pandemic, due to the health aspects associated with residential housing and strong housing stimulus packages.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED

Big cities tipped to lead fall in prices

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Original article by Ben Wilmot
The Australian – Page: 3 : 25-Nov-21

SQM Research has forecast that growth in residential property prices will slow in the first quarter of 2022 before falling in the second half of the year. SQM Research MD Louis Christopher says there are signs that the national housing market is nearing its peak, adding that the Australian Prudential Regulation Authority could further intervene in the mortgage market as soon as December. SQM Research has also forecast that Sydney and Melbourne will record the biggest fall in house prices.

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SQM RESEARCH PTY LTD

Rental affordability crisis looms as borders reopen

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Original article by Michael Bleby
The Australian Financial Review – Page: 33 & 34 : 24-Nov-21

A report from JLL warns that demand for rental housing in Australia will exceed supply in the medium-term, as state and international borders reopen in the wake of the pandemic. Leigh Warner of JLL says there has been a lot of focus on housing affordability, but rental affordability is set to become a major issue. Demand for apartments in particular is expected to exceed supply in the next few years, with a seven per cent decline in pipeline of new projects during the September quarter.

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JONES LANG LASALLE AUSTRALIA PTY LTD

Housing boom enters twilight

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Original article by Valerina Changarathil
The Australian – Page: 3 : 23-Nov-21

The Commonwealth Bank expects seven per cent growth in house prices in Australia’s capital cities in 2022. However, head of Australian economics Gareth Aird says the nation’s residential property boom is nearing its end, and he forecasts that house prices will fall by 10 per cent in 2023. However, he notes that this will merely see house prices return to current levels. Prices in Sydney and Hobart are tipped to decline by 12 per cent, while the housing markets in Melbourne and Canberra are forecast to fall by around 10 per cent. The ANZ Bank recently forecast that house prices will fall by four per cent in 2023.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Home affordability near the worst for 10 years

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Original article by Nila Sweeney
The Australian Financial Review – Page: 31 : 26-Oct-21

Moody’s Investors Service expects a further decline in housing affordability in Sydney in the near-term. The ratings agency has warned that dwelling prices will need to rise by just 4.6 per cent for the Sydney market’s affordability to reach its highest level in 10 years. Moody’s also forecasts that housing affordability nationwide will reach its highest level in a decade if dwelling prices rise by 15 per cent. Shane Oliver of AMP Capital says the decline in housing affordability could eventually led to increased mortgage stress.

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MOODY’S INVESTORS SERVICE INCORPORATED, AMP CAPITAL INVESTORS LIMITED

Housing value to hit $10 trillion

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Original article by Lachlan Moffet Gray
The Weekend Australian – Page: 21 & 24 : 2-Oct-21

Data from CoreLogic shows that housing values in Australia have risen by 17.6 per cent so far in 2021, including 1.5 per cent in September. Meanwhile, the total value of the nation’s housing stock may top $10trn by the end of the year if the current growth momentum continues. The Australian Bureau of Statistics recently reported that the value of housing stock rose to $8.92trn in the June quarter. National Australia Bank has forecast that house prices will rise by 20 per cent in 2021, following growth of about 3.8 per cent in 2022.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Demand for new houses goes through the roof

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Original article by Melissa Iaria
The Australian – Page: 20 : 1-Oct-21

Data from the Australian Bureau of Statistics shows that there was 6.8 per cent growth in dwelling approvals nationwide in August. This followed an 8.6 per cent decline in July. Private-sector housing approvals rose by 3.5 per cent month-on-month and nearly 24 per cent over the year to August. Daniel Rossi from the ABS attributes the rebound in housing approvals to factors such as increased household savings, historically low interest rates and confidence in the housing market.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Stimulus creates oversupply of homes

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Original article by Patrick Commins
The Australian – Page: 4 : 25-Aug-21

Tim Toohey of Yarra Capital says the take-up rate of the federal government’s HomeBuilder scheme was more than four times higher than expected. He says that together with state-based incentives, this will result in an oversupply of new housing by 2023. Toohey adds that there is also a good chance that house prices will fall over the next two years. The government received more than 99,000 applications to build a new home via the scheme, as well as some 22,000 applications to undertake renovations on an existing home.

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YARRA CAPITAL PARTNERS PTY LTD

Andrews tax a $7bn hit to the economy

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Original article by Rachel Baxendale
The Australian – Page: 7 : 14-Jul-21

Matthew Kandelaars, the CEO of the Urban Development Institute of Australia’s Victorian branch, has called for an urgent review of the state government’s proposed ‘windfall gains tax’ on property developers. Modelling undertaken on behalf of UDIA Victoria suggests that the rezoning tax will reduce state ­economic output by $7bn and result in the loss of 20,000 direct jobs, while at least 6,700 dwellings will not be built if the Budget measure goes ahead. UDIA Victoria has proposed an alternative model for the rezoning tax.

CORPORATES
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA (VICTORIA)