L67 Property Operators and Real Estate Services

Home affordability near the worst for 10 years

roymorgansocial Leave a comment

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.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, AMP CAPITAL INVESTORS LIMITED

Housing value to hit $10 trillion

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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.

CORPORATES
YARRA CAPITAL PARTNERS PTY LTD

Andrews tax a $7bn hit to the economy

roymorgansocial Leave a comment

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)

Solo buyers a growing force in the housing market

roymorgansocial Leave a comment

Original article by Nila Sweeney
The Australian Financial Review – Page: Online : 24-Jun-21

Solo first home buyers accounted for 38 per cent of ME Bank’s home loan applications in 2020, up three per cent on the previous year. Single women accounted for 49 per cent of all solo home loan applications, down one per cent on the previous year. ME Bank also reported that single men made their first home loan application at the average of 32 in 2020, down from an average age of 35 in 2018. Single woman took out their first home loan application at the average age of 34 in 2020, also down from an average age of 35 in 2018.

CORPORATES
ME BANK

NSW property developers face extra taxes

roymorgansocial Leave a comment

Original article by Aaron Patrick
The Australian Financial Review – Page: Online : 23-Jun-21

Tax changes introduced by NSW Planning Minister Rob Stokes on 22 June are the result of recommendations made by the NSW Productivity Commission in 2020. The Commission suggested that changes be made to the manner in which property developers are taxed in return for their projects being approved. Under the changes introduced by Stokes, land owners will have to give the government money or land when they sell or subdivide land that has increased in value because of government decisions. The changes are tipped to raise an extra $250 million a year in revenue.

CORPORATES
NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, NEW SOUTH WALES PRODUCTIVITY COMMISSION

Rental affordability worsens as housing supply dwindles

roymorgansocial Leave a comment

Original article by Nila Sweeney
The Australian Financial Review – Page: Online : 23-Jun-21

Suburbtrends has reported that 51 per cent of the 2,809 house markets it assessed require families to spend more than 30 per cent of their household income on rent, due to dwindling rental supply. It further found that there are 164 suburbs where families have to spend over 50 per cent of their household income to pay the rent on an average three-bedroom house. Suburbtrends director Kent Lardner says regions have been hit the hardest by rental shortages, while SQM Research MD Louis Christopher agrees rental supply is a big challenge for the regions.

CORPORATES
SUBURBTRENDS

House price growth among fastest in world

roymorgansocial Leave a comment

Original article by Mackenzie Scott
The Australian – Page: 3 : 10-Jun-21

Data from Knight Frank’s Global House Price Index shows that dwelling prices in Australia increased by 8.7 per cent in the six months to March. The nation ranked fourth in terms of house price growth among the 56 countries and territories that were surveyed. Meanwhile, Australia ranked 18th on an annualised basis, with house price growth of 8.3 per cent over the 12 months to March. Michelle Ciesielski of Knight Frank says Australia’s housing market has been "particularly resilient" during the COVID-19 pandemic.

CORPORATES
KNIGHT FRANK

Mortgage and rental stress worsen in May

roymorgansocial Leave a comment

Original article by Nila Sweeney
The Australian Financial Review – Page: 40 : 9-Jun-21

Data from Digital Finance Analytics shows that 41.3 per cent of households in New South Wales were in mortgage distress in May, compared with just 38.2 per cent in April. Likewise, 56.8 per cent of households in Tasmania were in mortgage distress. The northwest Sydney suburb of Stanhope Gardens had the nation’s highest level of mortgage stress in May, at 91.5 per cent. Meanwhile, the Northern Territory was the only jurisdiction that did not record an increase in rental stress during the month.

CORPORATES
DIGITAL FINANCE ANALYTICS