REAL ESTATE – AUSTRALIA – RESIDENTIAL

Off-the-plan values plummet in Melbourne

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 8 : 4-Jan-16

Analysis by WBP Property Group shows that there has been a sharp fall in the value of apartments bought off-the-plan in Melbourne during the last two years. The firm has reported that the average value of almost 2,000 apartments fell by around $A40,000 in 2014 and 2015. Kim Quick of Herron Todd White says there has not been a similar downturn in apartment values in Sydney, noting that the residential market has benefited from the New South Wales Government’s infrastructure program.

CORPORATES
WBP PROPERTY GROUP PTY LTD, HERRON TODD WHITE AUSTRALIA PTY LTD

House price growth will wane, says report

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 11 : 15-Dec-15

Domain Group’s "State of the Market" report forecasts that residential property prices in Australia’s capital cities will rise by 2-5 per cent in 2016. House prices are tipped to rise by four per cent in Sydney and five per cent in Melbourne, following growth of around 20 per cent and 12 per cent respectively in 2015. Senior economist Andrew Wilson expects renewed interest among property investors in 2016, citing factors such as negative gearing and the high yield relative to other investment options.

CORPORATES
DOMAIN.COM.AU, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SQM RESEARCH PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN BUREAU OF STATISTICS, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED

Sydney, Melbourne property prices hit the skids

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 7 : 2-Dec-15

New figures from CoreLogic RP Data show that dwelling values fell in five of Australia’s eight capital cities during November 2015. There was a 1.4 per cent decline in home values in Sydney during November and a one per cent downturn in the three months to November. Meanwhile, home values in Melbourne fell by 0.5 per cent for the quarter and 3.5 per cent in November. However, both cities are continuing to record double-digit annual growth in home values.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, RESERVE BANK OF AUSTRALIA

Retirees urged to sell homes

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 1-Dec-15

The Productivity Commission will release a report on housing and retirement on 1 December 2015. The commission will recommend releasing capital which is now frozen as equity in residential property. This money could be used as retirement income. Commissioner Karen Chester says Australians must change their attitude to property.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Construction outlook good says HIA

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Original article by Michael Bleby
The Australian Financial Review – Page: 32 : 24-Nov-15

A new report from the Housing Industry Association forecasts that total dwelling starts across Australia will exceed 200,000 in 2015-16. Chief economist Harley Dale says the residential construction market is set to remain buoyant for the next 12-18 months. Dale expects further growth in New South Wales housing starts in 2015, followed by a downturn in the following two years, while housing starts are tipped to fall in Victoria in the current year and the next two years.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED

Agents enter FIRB ‘grey area’

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Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 20-Nov-15

Australian real estate agents must familiarise themselves with new foreign investment laws on residential property which come into effect in December 2015. Property lawyer John Turnbull says non-compliance could result in civil penalties of up to $A45,000 for individuals and $A225,000 for companies. Some confusion may arise from the new rules not being sufficiently clear.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, KAY AND BURTON, THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Incentives eyed for downsizers

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Original article by Gretchen Friemann, David Uren
The Australian – Page: 6 : 20-Nov-15

The Australian Government has proposed measures aimed at reducing retirees’ dependence on the age pension by encouraging them to sell their family home and use the proceeds to invest in retirement products such as annuities. Measures being considered by Treasurer Scott Morrison include a stamp duty exemption for people who downsize to a smaller home and excluding the proceeds from the sale of a family home from the assets test for the age pension.

CORPORATES
AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. PRODUCTIVITY COMMISSION, COUNCIL ON THE AGEING, CHALLENGER LIMITED – ASX CGF, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. THE TREASURY

Auctions in Sydney fall to below 60pc

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Original article by Mercedes Ruehl
The Australian Financial Review – Page: 3 : 9-Nov-15

Preliminary data from Domain Group shows that Sydney’s residential property market boasted an auction clearance rate of 59.2 per cent on the weekend of 7-8 December 2015. This is its lowest level in around three years, and Domain’s Andrew Wilson says it could fall further before the end of the year. The clearance rate in Melbourne rose from 66 per cent to 70 per cent.

CORPORATES
DOMAIN.COM.AU, RAY WHITE REAL ESTATE, LAING AND SIMMONS HOLDINGS PTY LTD, AUSIN GROUP

10pc tax on financial services could mean higher house costs

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 4-Nov-15

Ernst & Young’s Brad Miller says a proposal to impose a 10 per cent tax on margin-based financial services could result in home buyers being taxed twice. The tax initiative was proposed by ex-KPMG tax partner Michael Evans, and would apply to banks’ margin of profit on financial products such as mortgages. Miller notes that house buyers could potentially pay GST on both the home itself and the interest on their mortgage loan.

CORPORATES
ERNST AND YOUNG, KPMG AUSTRALIA PTY LTD, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, BDO AUSTRALIA LIMITED

Sellers forced to meet the market as housing slowdown takes hold

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 3 : 2-Nov-15

Sydney boasted a preliminary residential auction clearance rate of 63.5 per cent on the weekend of 31 October and 1 November 2015, compared with 61.3 per cent for the previous weekend. The clearance rate in Melbourne was 65.4 per cent, with just 611 properties going under the hammer, after 1,690 homes were auctioned on the previous weekend for a clearance rate of 69.7 per cent. The national clearance rate was 63.3 per cent.

CORPORATES
McGRATH REAL ESTATE PTY LTD, INTERNATIONAL MONETARY FUND