REAL ESTATE – AUSTRALIA – RESIDENTIAL

Glut forces home sellers to cut prices

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 : 4-Dec-24

Data from SQM Research shows that the average asking price for homes in Sydney has fallen by 0.9 per cent in the last month, while asking prices in Melbourne are down 0.7 per cent. SQM Research MD Louis Christopher says the downturn in asking prices began in October, in response to a sharp increase in the volume of properties that are listed for sale. The number of dwellings that have been on the market for more than six months has also risen sharply; BresicWhitney CEO Thomas McGlynn says many of these homes are likely to be withdrawn from sale in coming days and returned to the market in early 2025.

CORPORATES
SQM RESEARCH PTY LTD, BRESIC WHITNEY ESTATE AGENTS PTY LTD

Upgraders the dominant force in housing market as prices slow

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Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 27-Nov-24

Research by CBRE shows that 64 per cent of Australian home buyers in the September quarter were existing home owners who were upgrading to a larger or more expensive dwelling. This compares with 59 per cent in the March quarter. In contrast, the proportion of first-home buyers fell from 66 per cent in the March quarter to 62 per cent. Sameer Chopra from CBRE says upgraders are likely to be taking advantage of factors such as falling house prices in the major capital cities, slowing price growth in medium-sized cities and a strong jobs market. CBRE’s findings are based on a survey of residential property valuers.

CORPORATES
CBRE PTY LTD

Where cash buyers are splurging billions

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Original article by Nila Sweeney
The Australian Financial Review – Page: 27 & 28 : 19-Nov-24

Data from electronic conveyancing firm PEXA Group shows that more home buyers in Australia are opting to pay with cash rather than take out a mortgage. The firm’s analysis of settled residential property transactions during 2023-24 shows that $138bn worth of sales were made using cash across NSW, Victoria and Queenland; this represents a year-on-year increase of 14 per cent. Some 114,000 properties were settled with cash, an increase of 3.9 per cent. PEXA’s chief economist Julie Toth says cash buyers could help to sustain house prices, noting that interest rates have less impact on them.

CORPORATES
PEXA GROUP LIMITED – ASX PXA

Rate call kills hopes for late spring bounce

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Original article by Michael Bleby
The Australian Financial Review – Page: 25 : 6-Nov-24

Kevin Brogan from national valuation firm Herron Todd White says the Reserve Bank’s decision to leave the cash rate unchanged on Tuesday will deter some buyers from entering the housing market. He adds that there is likely to be downward pressure on activity and prices in so-called mortgage-belt housing markets in particular. Property industry experts also suggest that the rates decision will hinder any upturn in the east coast market at the tail-end of the spring selling season.

CORPORATES
HERRON TODD WHITE AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA

Sydney home values heading for fall this year

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Original article by Nila Sweeney
The Australian Financial Review – Page: 24 : 1-Oct-24

Data from CoreLogic shows that home values in Sydney rose by just 0.5 per cent during the September quarter. This is the NSW capital’s lowest monthly increase in house prices since February 2023, and Tim Lawless of CoreLogic says prices could begin to fall in coming months. Meanwhile, house prices in Melbourne fell by 1.1 per cent in the September quarter; Perth recorded growth of 4.7 per cent, while house price growth in Brisbane slowed to 2.7 per cent. House prices rose by one per cent nationally during the period.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Rates on hold will not help home buyers

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Original article by Nila Sweeney
The Australian Financial Review – Page: 26 : 25-Sep-24

Australian home buyers’ borrowing capacity has been cut by around 30 per cent since the Reserve Bank started reducing the cash rate in May 2022. Tim Lawless from CoreLogic says borrowing capacity – and therefore buying activity in the housing market – will not improve until the central bank starts to ease monetary policy. AMP’s chief economist Shane Oliver in turn says demand is unlikely to rise until there are clear signs that the Reserve Bank is about to reduce the cash rate.

CORPORATES
RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP

Home values hit record highs, climbing in all states except Victoria

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Original article by Millie Muroi, Shane Wright
The Age – Page: Online : 11-Sep-24

Data from the Australian Bureau of Statistics shows that the total value of homes nationwide rose to nearly $11 trillion in the June quarter; this is $226bn higher quarter-on-quarter. The average house value across the nation is now more than $970,000; house values in NSW rose by one per cent during the period, to a record high of $1.22m. However, Western Australia recorded the biggest growth in average house values, up 6.2 per cent to $816,000. In contrast, the average house value in Victoria eased 0.7 per cent to $900,000.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Substantial rate cuts needed for buyers to return

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Original article by Nila Sweeney
The Australian Financial Review – Page: S4 : 10-Sep-24

The issue of housing affordability was discussed at a property summit on Monday. The median house price is just above $800,000 nationwide at present, but Eliza Owen from CoreLogic says a house would need be priced at about $500,000 to be affordable for someone on the median income. She told the summit that the pool of potential house buyers will remain limited until there is a substantial reduction in the cash rate. Meanwhile, Mortgage & Finance Association of Australia CEO Anja Pannek noted that factors such as higher serviceability buffers and interest rates are making it harder for some home owners to refinance their mortgage loan.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA

Home approvals get a boost but still below target

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Original article by Michael Bleby
The Australian Financial Review – Page: 24 : 3-Sep-24

Data from the Australian Bureau of Statistics shows that dwelling approvals rose to an 18-month high of 14,797 in July. Housing approvals also rose to an eight-month high of 165,443 in the year to July; approvals for detached houses increased by 0.3 per cent, while there was 34 per cent growth in approvals for apartments, townhouses and semidetached homes. JP Morgan economist Jack Stinson says sustained growth in approvals for apartments and other attached homes will be needed if the federal government’s target of building 1.2 million new homes over the next five years is to be achieved.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, JP MORGAN AUSTRALIA LIMITED

Melbourne in box seat for next housing upturn

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Original article by Nila Sweeney
The Australian Financial Review – Page: 30 : 24-Jul-24

AMP’s chief economist Shane Oliver expects all capital city housing markets to benefit when the Reserve Bank eventually starts to reduce the cash rate. However, he says Melbourne’s housing market may rebound the strongest, given that it has underperformed for some time. Data from CoreLogic’s daily home value index shows that a sharp rise in listings saw home values in Melbourne fall by 0.2 per cent over the first 19 days of July, and by 0.6 per cent over the last three months. Tim Lawless of Corelogic says Melbourne home values are likely to fall further in coming months, given the volume of new listings.

CORPORATES
AMP LIMITED – ASX AMP, CORELOGIC AUSTRALIA PTY LTD