REAL ESTATE – AUSTRALIA – RESIDENTIAL

Tale of two cities for luxury home prices

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Original article by Elizabeth Redman
The Australian – Page: 2 : 9-Nov-17

Sydney is ranked eighth on the quarterly Knight Frank Prime Global Cities Index, down from sixth position in the June quarter. The top end of Sydney’s residential property market recorded growth of 11 per cent in the year to September, compared with 11.5 per cent growth in the year to June. Melbourne has risen from 10th to ninth, with prestige residential properties rising by 10.4 per cent, up from 9.1 per cent annual growth in the June quarter. Guangzhou and Shanghai have recorded the largest growth in prime residential property values.

CORPORATES
KNIGHT FRANK

NZ overseas buyers ban ‘to push funds our way’

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Original article by Turi Condon, Rosanne Barrett
The Australian – Page: 2 : 26-Oct-17

Ray White Group chairman Brian White says more overseas buyers could seek to purchase residential properties in Australia due to the incoming New Zealand Government’s decision to restrict foreign ownership to new housing developments. However, White adds that the Chinese Government’s crackdown on outbound investment is likely to have a greater impact on Chinese demand for Australian housing.

CORPORATES
RAY WHITE GROUP, LABOUR PARTY (NEW ZEALAND), AMP CAPITAL INVESTORS LIMITED, REAL ESTATE INSTITUTE OF NEW ZEALAND, CORELOGIC INCORPORATED

‘Monster’ stamp duty tax should be slain

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Original article by Matthew Cranston
The Australian Financial Review – Page: 6 : 25-Oct-17

The property industry supports a recommendation of the Productivity Commission to replace stamp duty with a land tax regime. Urban Development Institute of Australia CEO Steve Mann notes that first-home buyers in Sydney now pay up to $A30,000 in stamp duty, while he adds that replacing this tax would encourage more people to downsize their home. However, it is estimated that a land tax would cost households around $A2,360 a year on average.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, MIRVAC GROUP – ASX MGR, LAING AND SIMMONS HOLDINGS PTY LTD, THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES

Housing affordability gets worse

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Original article by Michael Roddan
The Australian – Page: 20 : 19-Oct-17

A report from credit ratings agency Moody’s has warned that housing affordability has continued to decline across Australia. The firm estimates that mortgage repayments now account for 28.7 per cent of the average Australian couple’s monthly income, compared with 27.4 per cent in September 2016. Meanwhile, a survey by Fitch Ratings shows that just 34 per cent of bond investors regard a housing downturn as the biggest risk to the Australian economy, compared with nearly 50 per cent in 2016.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, FITCH RATINGS LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Sydney prices to rise ‘4 to 8pc’ in 2018: SQM

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 30 : 19-Oct-17

Data from CoreLogic shows that house prices in Sydney recorded growth of 8.5 per cent in the year to September 2017. However, SQM Research has forecast growth of just 4-8 per cent in 2018, assuming that economic growth remains steady and interest rates are unchanged. House prices are forecast to rise by 7-12 per cent in Melbourne and 3-7 per cent in Brisbane, while Hobart will record house price growth of 8-13 per cent.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, SQM RESEARCH PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

345,000 Aussie mortgage holders have no real equity in their homes

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 16-Oct-17

A Roy Morgan Single Source survey has found that 8% (345,000) of mortgage holders in Australia had little or no real equity in their home in the year to August 2017, compared with 7.1% in the year to August 2016. This is based on the fact that the value of their home is only equal to or less than the amount they still owe, placing them at considerable risk if they have to sell or prices decline. The survey also shows that Western Australia has the highest proportion of mortgage customers with no real equity in their home, at 14% (71,000), while Tasmania has the lowest proportion of mortgage holders with little or no equity in their home, at only 4.9% (4,000).

CORPORATES
ROY MORGAN RESEARCH LIMITED

Sydney house prices slump for the first time since 2015

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 5 : 3-Oct-17

Data from CoreLogic shows that there was an 0.1 per cent decline in Sydney house prices during September 2017. Sydney recorded house price growth of 0.2 per cent in the September quarter, although this compares with 3.5 per cent growth for the same period in 2016. The figures also show that house prices in Melbourne rose by 0.9 per cent in September, while Hobart recorded price growth of 1.7 per cent and house prices in Perth increased by 0.1 per cent.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, McGRATH LIMITED – ASX MEA

Sellers beware: Auction action could be slowing to 50 per cent

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 6 : 2-Oct-17

House auctions in Melbourne and Sydney on the weekend of 30 September-1 October were impacted significantly by the AFL and NRL grand finals respectively. Just 118 auctions were held in Melbourne, down from 1,361 for the previous weekend, although the clearance rate rose from 70.6 per cent to 89.4 per cent. Sydney auctions fell from 1,033 to 597, while its clearance rate increased from 65.9 per cent to 69.1 per cent. Louis Christopher from SQM Research expects clearance rates in both October and November to decline.

CORPORATES
SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, BELLE PROPERTY PTY LTD, UBS GLOBAL REAL ESTATE INDEX

Apartment slowdown to hit economy hard: Triguboff

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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

Build-to-rent will struggle in Australia

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 37 : 6-Sep-17

Melbourne-based Caydon Property Group has started work on its first "build-to-rent" apartment project in the US. However, Caydon founder Joe Russo questions whether the build-to-rent model will be successful in Australia, noting that rising property values means that such an apartment building is likely to be less profitable than selling all apartments off the plan. Mirvac is undertaking a capital raising to finance its first build-to-rent project, while Salta Properties also plans to enter the sector.

CORPORATES
CAYDON PROPERTY GROUP PTY LTD, MIRVAC GROUP – ASX MGR, SALTA PROPERTIES PTY LTD, AMP CAPITAL INVESTORS LIMITED, SCAPE LIVING STUDENT ACCOMMODATION, MACQUARIE CAPITAL PTY LTD, GREYSTAR REAL ESTATE PARTNERS LLC, DOMUS HOLDINGS CORPORATION