REAL ESTATE INVESTMENT – AUSTRALIA

Low rental yields a risk: Moody’s

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 6 : 12-Apr-16

Credit ratings agency Moody’s has warned Australians about the pitfalls of investing in residential property in the current investment environment. A decline in rental yields to record lows in Sydney and Melbourne has resulted in a higher risk of default. Savills’ head of research, Tony Crabb, says the Moody’s warning should be seen in the wider context of risk mitigation strategies that are available to investors.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, SAVILLS (AUST) HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

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

Negative gearing cap tipped to push up rents

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 19-Feb-16

Mortgage Choice has posted a 2015-16 interim net profit of $A10.1m, which is 12.4 per cent higher than previously. The mortgage broker’s revenue rose by 5.4 per cent to $A102.3m, and its loan book increased by 4.7 per cent to a record $A50.7bn. CEO John Flavell has warned that the Federal Government’s proposed changes to the negative gearing regime would result in rent increases, as it would reduce the pool of rental housing.

CORPORATES
MORTGAGE CHOICE LIMITED – ASX MOC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

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

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

World Square sale caps $7.6b investment surge

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Original article by Mercedes Ruehl
The Australian Financial Review – Page: 57 : 23-Dec-15

Some $A7.6bn worth of shopping centres have changed hands in 2015, including a record $A2.7bn in the fourth quarter. In one of the latest deals, ISPT will pay $A285m for a 50 per cent stake in Sydney’s World Square shopping centre. Other groups that have been active in Australia’s retail property sector in recent months include Blackstone, AMP Capital, Vicinity Centres and Challenger.

CORPORATES
ISPT PTY LTD, BLACKSTONE REAL ESTATE ADVISORS LLC, AMP CAPITAL INVESTORS LIMITED, VICINITY CENTRES – ASX VCX, CHALLENGER LIMITED – ASX CGF, BROOKFIELD ASSET MANAGEMENT INCORPORATED, ABU DHABI INVESTMENT COMPANY, WORLD SQUARE PTY LTD, JONES LANG LASALLE AUSTRALIA PTY LTD, WESTFIELD CORPORATION – ASX WFD, SCENTRE GROUP – ASX SCG, CITY OF SYDNEY, SHOPPING CENTRE NEWS

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

Commercial property’s best year since 2008

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Original article by Robert Harley
The Australian Financial Review – Page: 30 : 24-Nov-15

The latest PCA/IPD Australia Property Index data shows that Australia’s commercial property sector delivered a total return of 12 per cent in the year to 30 September 2015. This was the best total return since the September 2008 quarter. The Sydney and Melbourne office markets both achieved a return of 14.7 per cent for the year, while neighbourhood shopping centres boasted the highest return in the retail property sector, at 14.4 per cent.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, IPD, MSCI INCORPORATED

Chinese retreat from property in Australia

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Original article by Lisa Murray, Angus Grigg
The Australian Financial Review – Page: 3 : 15-Sep-15

The introduction of tighter foreign exchange rules in China has had a negative effect on Chinese investments in Australia’s property sector. Fewer Chinese are now able to apply for the Federal Government’s Significant Investor Visa (SIV) scheme. Eligibility is restricted to those able to invest at least $A5 million in Australian assets such as venture capital and emerging companies. Only seven SIV applications have been made since 1 July 2015.

CORPORATES
PEOPLE’S BANK OF CHINA, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Chinese face big losses as $A falls

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 39 : 14-Sep-15

Basis Point estimates that the sharp decline in the value of the Australian dollar since late 2014 has cost Chinese investors about $A12bn. Basis Point’s David Chin notes that investors in residential property who have already settled the deal will have lost money. However, investors in off-the-plan apartments that have not yet been settled will benefit from the currency’s decline.

CORPORATES
BASIS POINT CONSULTING, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD