REAL ESTATE – AUSTRALIA – RESIDENTIAL

Perth tipped to top house price growth

roymorgansocial Leave a comment

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 30 : 29-Nov-18

Domain economist Trent Wiltshire is upbeat about the residential property market in Perth, forecasting a five per cent increase in house prices during 2019. He cites factors such as a growing economy, a rising population, the development of new mines in the state and stronger commodity prices. Domain also forecasts that house prices in Melbourne will decline by one per cent in 2019 and Sydney prices will remain flat; prices in both cities are then tipped to rise by four per cent in 2020.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, RESERVE BANK OF AUSTRALIA, SQM RESEARCH PTY LTD, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

House prices could fall 20pc: ANZ

roymorgansocial Leave a comment

Original article by Turi Condon
The Australian – Page: 27 : 23-Nov-18

The ANZ Bank is bearish about the outlook for the residential property market in Melbourne and Sydney, forecasting that house prices will fall by 15-20 per cent from their peak. ANZ expects increased lending restrictions to weigh on the property market, while other potential headwinds include the federal election due in 2019 and the final report of the financial services royal commission. ANZ also expects official interest rates to remain on hold until 2020.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE SECURITIES PTY LTD

Aussie John warns Labor’s property plan a nuclear bomb

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 1 & 2 : 19-Nov-18

Aussie Home Loans founder John Symond has warned that Labor’s proposed changes to the negative gearing regime could lead to a recession in Australia. He says that although the "grandfathering" provisions of the Labor reforms would benefit people who are buying their first home, they would cause property prices to fall and result in many existing homeowners having negative equity in their home. Symond supports negative gearing reforms, but he argues that they should primarily target people on high incomes.

CORPORATES
AUSSIE HOME LOANS LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, THE TAX INSTITUTE, SQM RESEARCH PTY LTD

RBA in housing market warning

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 1 & 6 : 16-Nov-18

Apartment developers are increasingly having to seek funds from non-bank lenders as the major banks cut back on lending to the sector. The Reserve Bank’s deputy governor Guy Debelle says it is a trend that the central bank is keeping an eye on, warning that if it is overdone it could lead to a downturn in the housing market. Urbis recently reported that only 46 units were sold in new Sydney projects during the September quarter, compared to 381 sales of units in the previous corresponding period.

CORPORATES
RESERVE BANK OF AUSTRALIA, URBIS PTY LTD

Negative gearing changes would create distortions

roymorgansocial Leave a comment

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 34 : 13-Nov-18

RiskWise CEO Doron Peleg contends that Labor’s proposed negative gearing reforms would create a two-tiered property market. Economist Stephen Koukoulas believes that concerns about Labor’s proposals are unwarranted, as any fall in house prices that might result will make it easier for first-home buyers to enter the market. Tyrone Hodge of JLL thinks the proposed changes could have a negative impact on housing supply.

CORPORATES
RISKWISE, AUSTRALIAN LABOR PARTY, JONES LANG LASALLE AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA

Housing builder Tamawood warns first-half sales will fall 15pc

roymorgansocial Leave a comment

Original article by Su-Lin Tan
The Australian Financial Review – Page: Online : 9-Nov-18

Tamawood chairman Robert Lynch told shareholders at the housing builder’s AGM on 8 November that it expected that home sales for the first half would be done by 15 per cent. He noted the housing market was facing a number of challenges at the moment, including the tightening of lending criteria by banks as the result of the banking royal commission. Lynch said the biggest fall in current sales was being seen in Sydney and Melbourne, while he told shareholders that Tamawood was well placed to increase its market share in what was a "tightening market"

CORPORATES
TAMAWOOD LIMITED – ASX TWD, RESERVE BANK OF AUSTRALIA

Investor hit: Labor seats in crossfire

roymorgansocial Leave a comment

Original article by Simon Benson
The Australian – Page: 1 & 4 : 7-Nov-18

The federal government’s analysis of income and tax data for 2015-16 shows that 1.3 million Australians owned a negatively-geared investment property during that financial year. Some 640,000 people lived in seats held by the Coalition, while 570,000 were in seats held by Labor. Two Labor-held seats in the Australian Capital Territory had the highest number of people who used negative gearing. Treasurer Josh Frydenberg says Labor’s proposed changes to the negative gearing regime will hit not only its own supporters, but all Australians who own a home.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, RESERVE BANK OF AUSTRALIA, RISKWISE

Australia most exposed to a downturn

roymorgansocial Leave a comment

Original article by John Kehoe
The Australian Financial Review – Page: 3 : 31-Oct-18

Morgan Stanley has warned that Australia is at greater risk of an economic downturn than other Group of 10 nations due to rising household debt. The household debt-to-income ratio in Australia has risen to nearly 200 per cent amid the surge in house prices in recent years. Meanwhile, although house prices have fallen over the last 12 months, the Reserve Bank’s assistant governor Michele Bullock says a regulatory crackdown on lending to investors has not resulted in a significant downturn in the property market.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Housing doldrums here to stay

roymorgansocial Leave a comment

Original article by Olivia Caisley
The Australian – Page: 5 : 29-Oct-18

Preliminary data from CoreLogic shows that Sydney boasted a residential auction clearance rate of 50.7 per cent on the weekend of 27-28 October, compared with 58.3 per cent for the previous corresponding period. Melbourne’s preliminary clearance rate was 49.8 per cent, down from 70.2 per a year ago. More than 2,900 homes went under the hammer across Australia, although the national clearance rate was just 50 per cent. Shane Oliver of AMP Capital expects the housing market weakness to persist into 2020.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, AMP CAPITAL INVESTORS LIMITED

Property giants sell land amid slower market

roymorgansocial Leave a comment

Original article by Ben Wilmot, Elizabeth Redman
The Australian – Page: 25 : 26-Oct-18

Residential developer Stockland is targeting over 6,000 settlements in 2018-19, but it only achieved 1,030 in the first quarter. Stockland and fellow developer Mirvac are targeting first-home buyers, but both are worried about Labor’s policies on negative gearing and capital gains tax, as well as the tightening of credit. Mirvac is selling a land site at Ingleside in Sydney, while Stockland has put its The Grove Estate project in Melbourne’s west on the market.

CORPORATES
STOCKLAND – ASX SGP, MIRVAC GROUP – ASX MGR, AUSTRALIAN LABOR PARTY, UBS HOLDINGS PTY LTD, BIGGIN AND SCOTT PTY LTD, CLSA AUSTRALIA PTY LTD, CBRE PTY LTD