REAL ESTATE – AUSTRALIA – RESIDENTIAL

Rate of investor home loans plummets

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 10-Mar-16

Figures from the Australian Bureau of Statistics show that total lending to residential property investors fell by 14.8 per cent to a seasonally adjusted $A11.36 billion in January 2016. This is the fastest rate of decline in seven years. Total lending to owner-occupiers increased by 15.9 per cent in the 12 months to January 2016.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, HSBC AUSTRALIA HOLDINGS PTY LTD, MIRVAC GROUP – ASX MGR, AMP CAPITAL INVESTORS LIMITED, UBS HOLDINGS PTY LTD

Sydney auction success slips, but Melbourne holds its own

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Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 7-Mar-16

Sydney’s residential property market boasted an auction clearance rate of 73.3 per cent on the weekend of 5-6 March 2016, compared with 76.9 per cent one week earlier. The clearance rate in Melbourne rose from 75.3 per cent to 75.8 per cent, and Andrew Wilson of Domain expects a large rise in auction listings for the "super Saturday" ahead of the Easter break.

CORPORATES
DOMAIN.COM.AU, AUSTRALIAN PROPERTY MONITORS PTY LTD, ABERCROMBYS REAL ESTATE PTY LTD, SIMEON MANNERS PROPERTY, JP MORGAN AUSTRALIA LIMITED, TOGA PTY LTD

House-boom paradox may signal a structural change

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Original article by Robert Harley
The Australian Financial Review – Page: 42 : 3-Mar-16

CoreLogic has identified a paradoxical trend in the real estate market in Australia. Since 2003, the value of housing sales has risen by more than 30 per cent in Sydney and Melbourne while the number of sales has declined by nearly 20 per cent. In 2015, 482,000 houses and apartments were sold, worth a record $A293 billion. In 2003, more than 621,000 properties were sold, worth $A200 billion.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

No ‘Big Short’ house price crash in auction results

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 3 : 29-Feb-16

Preliminary data shows that Sydney’s residential property market boasted an auction clearance rate of 73.3 per cent on the weekend of 27-28 February 2016, with 872 homes going under the hammer. The clearance rate in Melbourne was 75 per cent, with 1,327 properties up for sale. CoreLogic RP Data notes that the combined capital city clearance rate was higher than 70 per cent for the fourth week in a row.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN PROPERTY MONITORS PTY LTD, VARIANT PERCEPTION, APT CAPITAL MANAGEMENT PTY LTD, LF ECONOMICS

Negative gearing debate sparks divisions, passion

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Original article by Anne Hyland, Larry Schlesinger
The Australian Financial Review – Page: 1 & 4 : 17-Feb-16

Mayne Pharma director Roger Corbett has urged the Australian Government to leave the negative gearing regime unchanged, arguing that it has increased the wealth of people on middle incomes. Yellow Brick Road’s Mark Bouris also opposes any change to negative gearing, warning of the impact on economic growth and the investment market. However, former Perpetual fund manager Peter Morgan and ex-Reserve Bank board member Warwick McKibbin favour the abolition of negative gearing.

CORPORATES
MAYNE PHARMA GROUP LIMITED – ASX MYX, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, PERPETUAL LIMITED – ASX PPT, RESERVE BANK OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WAL-MART STORES INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Liberal MPs wary on negative gearing

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 16-Feb-16

Discussions about negative gearing have a political aspect. Both the Coalition and the Opposition want to impose restrictions in this area despite resistance from investors. The Australian Labor Party has proposed limiting negative gearing to new homes, while Treasurer Scott Morrison favours limits on the number of negatively geared properties or a cap on annual tax deductions. Coalition MPs are worried about a backlash from voters.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Property returns trounce shares

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Original article by Simon Evans
The Australian Financial Review – Page: 29 : 11-Feb-16

The Australian sharemarket has delivered a total return of 58 per cent over the last decade. However, residential property prices in Melbourne and Sydney have risen by 92 per cent over the same period. Domain Group’s chief economist Andrew Wilson does not expect the housing market to enjoy such gains in the next decade, warning that growth is likely to be much lower. Perpetual’s Matt Sherwood says equities investors should also expect lower growth in dividends in the near-term.

CORPORATES
DOMAIN.COM.AU, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

House buyers flock back to revitalise Sydney clearance rates

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 2 : 8-Feb-16

CoreLogic RP Data reports that Sydney’s residential property market boasted an auction clearance rate of 70.2 per cent on the weekend of 6-7 February 2016. This compares with a clearance of just 44.9 for the previous weekend, although the number of homes that were auctioned rose from 61 to 265. The clearance rate in Melbourne was 80.1 per cent, compared with 69.9 per cent one week earlier.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, WARWICK WILLIAMS REAL ESTATE, SQM RESEARCH PTY LTD, RESERVE BANK OF AUSTRALIA

Don’t touch negative gearing, MPs warned

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Feb-16

The Property Council of Australia stresses the importance of negative gearing for housing. It will argue in a submission to the joint standing committee on economics’ inquiry into tax deductibility that negative gearing should be retained in its current form. The Property Council has warned that it could mobilise negatively geared voters in marginal seats to persuade politicians to leave negative gearing unchanged.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY

NAB tips unit prices to fall

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 4-Feb-16

National Australia Bank’s latest quarterly survey of the housing market suggests a rise of one per cent in house prices for 2016. Apartment prices are expected to fall by 1.2 per cent. Houses in capital cities experienced average price growth of 7.8 per cent in 2015. The survey is based on the responses of 250 real estate professionals, fund managers, property owners and investors.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB