Housing construction ticks up slightly in June

Original article by Michael Bleby
The Australian Financial Review – Page: 26 : 10-Oct-19

New figures show that residential building starts increased by 1.1 per cent in the June quarter, following declines in the previous two quarters. A 10.6 per cent decline in detached-housing starts was offset by a 21 per cent increase in apartment starts. Meanwhile, housing starts for the year to June totalled 196,867; this was the first year-on-year fall since September 2014. Ernst & Young’s chief economist Joanne Masters expects a further decline in residential construction activity.

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ERNST AND YOUNG, HOUSING INDUSTRY ASSOCIATION LIMITED, COMMONWEALTH SECURITIES LIMITED, TAMAWOOD LIMITED – ASX TWD

Price rises set housing up for new boom

Original article by Sarah Turner
The Australian Financial Review – Page: 22 : 30-Sep-19

Data to be released by CoreLogic on 1 October is expected to show that house prices in Sydney and Melbourne have increased by 3.2 per cent and 3.4 per cent over the last four months. Prices rose by 1.6 per cent in Sydney and 1.4 per cent in Melbourne during August. Yarra Capital’s Tim Toohey has flagged the potential for a housing bubble in the medium-term, particularly if the Reserve Bank further eases monetary policy, while the ANZ Bank’s David Plank says regulatory intervention may be necessary if prices keep rising and there is an upturn in mortgage lending.

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CORELOGIC AUSTRALIA PTY LTD, YARRA CAPITAL PARTNERS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, MORGANS FINANCIAL LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, BIS OXFORD ECONOMICS PTY LTD, AMP CAPITAL INVESTORS LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Sydney median house price rises in June quarter

Original article by Michael Bleby
The Australian Financial Review – Page: Online : 18-Sep-19

The median price for Sydney homes rose $5,000 to $875,000 in the June quarter, according to the Australian Bureau of Statistics, while Melbourne’s median house price held at $680,000. Prices for prices for detached dwellings fell nationally by 0.6 per cent, compared to a 3.1 per cent decline in the March quarter, while prices for attached dwellings fell by 0.8 per cent, compared to a three per cent decline in the March quarter.

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AUSTRALIAN BUREAU OF STATISTICS

Auction clearances hit a ceiling

Original article by Michael Bleby
The Australian Financial Review – Page: 2 : 16-Sep-19

Data from Corelogic reveals that Sydney recorded a preliminary auction clearance rate of 80.3 per cent on 14 September, while Melbourne recorded a preliminary clearance rate of 75.7 per cent. Nationally, the preliminary auction clearance rate came in at 75.7 per cent, down from the previous weekend’s preliminary clearance rate of 77 per cent. Industry observers note that general fears about a weak economy are prompting potential vendors to hold back on listing their property.

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CORELOGIC AUSTRALIA PTY LTD

Clearance rates show a market in turnaround

Original article by Su-Lin Tan
The Australian Financial Review – Page: 6 : 9-Sep-19

Data from Corelogic reveals that Sydney recorded a preliminary auction clearance rate of 83.1 per cent on 7 September, while Melbourne recorded a preliminary clearance rate of 76.6 per cent. As in previous weeks, the number of homes listed for sale was over 20 per cent down in both cities when compared to the same time in 2018. Meanwhile, QBE’s latest Housing Outlook indicates that Sydney house prices will rise around 1.2 per cent in the year to June 2020, while Melbourne’s prices will be generally flat.

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CORELOGIC AUSTRALIA PTY LTD, QBE INSURANCE GROUP LIMITED – ASX QBE

Rebound is on: prices rise across the board

Original article by Mackenzie Scott
The Australian – Page: 5 : 3-Sep-19

New data from CoreLogic shows that house prices rose by 0.8 per cent nationally in August, which is the first increase since October 2017. CoreLogic’s latest Hedonic Home Value Index also shows that house prices in Sydney and Melbourne rose by 1.6 per cent and 1.4 per cent respectively in August, while Perth and Darwin were the only two capital cities to record a fall in house prices. Shane Oliver of AMP Capital says rising auction clearance rates suggest that house prices will continue to increase over the next 9-12 months.

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CORELOGIC AUSTRALIA PTY LTD, AMP CAPITAL INVESTORS LIMITED

Double-digit growth for Sydney, Melbourne

Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 29-Aug-19

SQM Research is upbeat about the residential property market, forecasting that Sydney house prices will increase by two per cent in the September 2019 quarter and four per cent in the December quarter. Data from SQM shows that asking prices in Sydney have risen by 5.6 per cent since the federal election in May. SQM MD Louis Christopher believes there is the potential for the residential market in Sydney and Melbourne to record double-digit growth in 2020.

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SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, SELECT RESIDENTIAL PROPERTY GROUP, CATE BAKOS PROPERTY

Cure for housing fix ‘worse than disease’: UBS

Original article by Duncan Hughes
The Australian Financial Review – Page: 10 : 23-Aug-19

Investment bank UBS has warned that the Reserve Bank of Australia’s move towards extremely low interest rates risks reflating the residential property ‘bubble’. The ultra-low rates are also putting pressure on the dividend policies and margin levels of the nation’s large banks, while plans by the Australian Prudential Regulation Authority to reduce related-party exposure limits with regard to Tier 1 capital will put pressure on the banks’ capital.

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UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA RADIATION LABORATORIES, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Claims of underquoting an odd sign of a market rising

Original article by Su-Lin Tan, Nila Sweeney
The Australian Financial Review – Page: 34 : 22-Aug-19

Some buyers’ advocates have expressed concern that the residential property market is again being affected by underquoting. Melbourne-based Scott Hall notes that there has been a significant decline in underquoting by real estate agents since legislation to crack down on the practice was introduced in 2017. Real Estate Institute of New South Wales CEO Tim McKibbin agrees that underquoting has become less prevalent in recent years.

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THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES, FAIR TRADING NSW, VICTORIA. DEPT OF JUSTICE AND REGULATION. CONSUMER AND BUSINESS AFFAIRS VICTORIA, RAINE AND HORNE PTY LTD

Buyers brave winter chill as property market warms

Original article by Nick Lenaghan
The Australian Financial Review – Page: 8 : 12-Aug-19

Figures from CoreLogic indicate Sydney recorded a preliminary auction clearance rate of 81.2 per cent for the weekend of 10-11 August, while Melbourne recorded a preliminary auction clearance rate of 73.2 per cent. Nationally, the preliminary auction clearance rate came in at 70.4 per cent. Louis Christopher from SQM says the preliminary results suggest the residential real estate market is on the improve, while he expects listings to rise in the upcoming spring "selling season".

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CORELOGIC AUSTRALIA PTY LTD