High-rise units are ‘real estate’s equivalent of the bubonic plague’, says researcher

Original article by Euan Black
The New Daily – Page: Online : 8-Aug-19

A report from Propertyology notes that growth in Australia’s median house price exceeded that of apartments by 20 per cent over the five years to April, and the firm expects this trend to continue for some time. Propertyology director Simon Pressley says factors such as an apartment glut and concerns about building defects means that people who have bought apartments in medium-to-high-density towers over the last two decades should sell them as soon as possible. He warns that some of these buildings are of such poor quality that demolition may be the only option to restore public confidence in high-rise towers.

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PROPERTYOLOGY, SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD

Stockland, Mirvac and Lendlease face settlement risk

Original article by Ben Wilmot, Samantha Bailey
The Australian – Page: 17 & 23 : 31-Jan-19

UBS says settlement risk could be a problem for Mirvac, Lendlease and Stockland in coming years as a result of the downturn in Australia’s apartment market. US believes that Mirvac is most vulnerable to settlement risk; however, such concerns have been downplayed by the head of Mirvac’s residential division, Stuart Penklis. Meanwhile, Dominic Lambrinos of Chifley Securities says some developers could be forced to sell development sites at a discount.

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UBS HOLDINGS PTY LTD, MIRVAC GROUP – ASX MGR, LEND LEASE GROUP LIMITED – ASX LLC, STOCKLAND – ASX SGP, CHIFLEY SECURITIES, CORELOGIC AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP, CREDIT SUISSE (AUSTRALIA) LIMITED

Apartment prices to come under pressure

Original article by Michael Bleby
The Australian Financial Review – Page: 6 : 7-Jan-19

BIS Oxford Economics estimates that 17,000 additional high-rise apartments will hit the Melbourne market in 2019, compared with 13,500 in 2018. Likewise, some 26,300 apartments in Sydney are expected to be completed in 2019, down from 28,000 in the previous year. The large number of apartments coming onto the market is expected to put further pressure on prices, while Angie Zigomanis of BIS notes that there may also be an increase in vacancy rates and a corresponding fall in rents.

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BIS OXFORD ECONOMICS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, WORLD CLASS LAND (AUSTRALIA) PTY LTD, ASPIAL CORPORATION LIMITED

Alarm bells in housing as losses widen

Original article by Elizabeth Redman
The Australian – Page: 17 & 21 : 30-Oct-18

UBS has reported that the percentage of capital city apartments that are being resold at a loss when compared to their previous purchase price has risen to 14.3 per cent, the highest since the 1990s. UBS also notes one in three homes sold off the plan in Sydney have a lower valuation at settlement when compared to the original sale price. Meanwhile, Fragrance Group has abandoned plans for an apartment project at 555 Collins Street in Melbourne. The site has been sold to a Charter Hall fund with the expectation that it will now be used for an office tower.

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UBS HOLDINGS PTY LTD, FRAGRANCE GROUP LIMITED, CHARTER HALL GROUP – ASX CHC, MOODY’S ASIA-PACIFIC LIMITED, AMP CAPITAL INVESTORS LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Developers warned about GST trap on unsold units

Original article by Duncan Hughes
The Australian Financial Review – Page: 37 : 15-May-18

Tax adviser Ken Fehily has urged property developers who rent out newly-completed apartments because they are struggling to sell them to be mindful of their goods and services tax liabilities. He says developers in this situation could be triggering GST liabilities without being aware of it, and that they will certainly have to pay the full GST when they eventually sell the apartment. Capital Economics expects Melbourne apartment prices to fall by nine per cent in 2018, while Sydney apartment prices are tipped to decline by four per cent.

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CAPITAL ECONOMICS LIMITED, AUSTRALIAN TAXATION OFFICE, FEHILY ADVISORY

Apartment slowdown to hit economy hard: Triguboff

Original article by Turi Condon
The Australian – Page: 2 : 11-Sep-17

Apartment prices have fallen by around 10 per cent over the past six months, according to Harry Triguboff. Australia’s biggest builder of apartments says governments may need to take action if prices, along with new apartment starts, continue to fall. He says trends that are seeing young people share or stay with their parents for longer is hurting new apartment construction, as is tepid wages growth.

CORPORATES
MERITON APARTMENTS PTY LTD, RESERVE BANK OF AUSTRALIA, BIS OXFORD ECONOMICS, AUSTRALIA. DEPT OF THE TREASURY

Apartment glut sees increase of sales at less than purchase price

Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 30-Sep-15

A report from CoreLogic RP Data shows that the number of apartments in Australia’s capital cities that sold below their purchase price rose in the June 2015 quarter. The proportion of loss-making apartments was highest in the Melbourne CBD, accounting for about 20 per cent of all sales. However, Perth and Darwin recorded the biggest percentage increase in apartments selling at a loss.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, RESERVE BANK OF AUSTRALIA

Median house price in Sydney tops $1m

Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 23-Jul-15

New data from Domain Group shows that the median house price in Sydney rose by 22.9 per cent in 2014-15, to a record high of slightly more than $A1m. The harbour city’s median house price was just $A814,285 in 2013-14. Meanwhile, Sydney’s median apartment price rose by 13.9 per cent to $A656,078. Housing remains more affordable in Melbourne, with the median price of houses rising by 10.3 per cent to $A668,030 and apartment prices rising by 4.5 per cent to $A443,549.

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DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ