REAL ESTATE – PRICES – AUSTRALIA

ME boss tips two years of house price weakness

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Original article by James Frost
The Australian Financial Review – Page: 17 : 25-Sep-18

ME Bank has reported a statutory net profit of $89.1m, which is 43.9 per cent higher than previously, while its underlying earnings rose 13 per cent to $96.5m. CEO Jamie McPhee does not expect a significant fall in house prices, although he says prices are likely to ease slightly over the next two years. McPhee adds that the revelations of the banking royal commission do not appear to have had much impact on ME Bank’s customer numbers and deposit inflows.

CORPORATES
ME BANK, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Sydney to lead subsidence in house prices, says Moody’s

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 37 : 18-Sep-18

Moody’s Analytics has forecast a 1.6 per cent fall in housing prices across Australia in 2018. The firm expects house prices in Sydney to decline by 5.1 per cent overall, although some suburbs will record larger declines while others will record growth. House prices in Melbourne are forecast to rise by 0.3 per cent in 2018, with Brisbane tipped to record growth of 1.5 per cent and prices in Perth to fall by 1.9 per cent. The forecasts are based on historical data from CoreLogic’s Hedonic Home Value Index.

CORPORATES
MOODY’S ANALYTICS AUSTRALIA PTY LTD, CORELOGIC AUSTRALIA PTY LTD, MORRELL AND KOREN BUYERS’ ADVOCATES

Big city house prices to drop 5pc: Steinert

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 17-Sep-18

Stockland CEO Mark Steinert has forecast that house prices in Sydney and Melbourne will fall by around five per cent over the next 12 months. However, the expected decline is likely to be primarily restricted to the higher end of the detached housing market, a view shared by Mirvac CEO Susan Lloyd-Hurwitz. Data from CoreLogic shows that the prices of detached houses in Sydney fell by 7.1 per cent in the year to August, compared with a 2.7 per cent decline in Melbourne.

CORPORATES
STOCKLAND – ASX SGP, MIRVAC GROUP – ASX MGR, CORELOGIC AUSTRALIA PTY LTD, GPT GROUP – ASX GPT, CBUS PROPERTY PTY LTD, VICINITY CENTRES – ASX VCX, PROPERTY COUNCIL OF AUSTRALIA LIMITED, BIS OXFORD ECONOMICS PTY LTD

Sydney property prices fall the fastest in nine years: CoreLogic

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Original article by Michael Bleby
The Australian Financial Review – Page: Online : 4-Sep-18

CoreLogic reported on 3 September that Sydney house prices had fallen by 5.6 per cent over the year to August. This represented the biggest decline of any capital city for that period, while it was the biggest fall recorded for Sydney house prices since early 2009. Sydney was the location of nine of the 10 worst performing sub-regions over the year to August, with Ryde the worst hit. Melbourne house prices fell by two per cent in the three months to August, making it the worst performing capital city over that period.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Mortgage rates are going up as house prices are falling and that’s unusual à and a worry

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Original article by Stephen Letts
abc.net.au – Page: Online : 2-Sep-18

House prices are falling at the same time as mortgages are increasing, and this does not happen often in Australia; the last time it occurred was in 2008. Mortgage rates were higher at that time than they are now, while unemployment was lower back in 2008. As is currently the case, the main reason why banks increased their mortgage rates back in 2008 was due to funding costs, rather than because of Reserve Bank action. Paul Dales from Capital Economics says the three conditions that could see Australia face a recession or financial crisis in the next few years are currently all present: higher mortgages; falling house prices; and a tightening of credit.

CORPORATES
RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, SUNCORP GROUP LIMITED – ASX SUN, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANKWEST, ROYAL BANK OF CANADA

Labor win a housing game changer

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Original article by Sarah Turner
The Australian Financial Review – Page: 8 : 23-Aug-18

Brett Gillespie of Ellerston Capital says financial markets are not giving much consideration to the possibility that Labor will win the next federal election. He notes that a Labor government would have a major impact on the property market, given that Labor proposes to restrict negative gearing to new homes. Gillespie adds that a Labor win would also have implications for the sharemarket and the broader economy.

CORPORATES
ELLERSTON CAPITAL PTY LTD, AUSTRALIAN LABOR PARTY, BELL POTTER SECURITIES LIMITED, PERPETUAL LIMITED – ASX PPT, REA GROUP LIMITED – ASX REA, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, McGRATH LIMITED – ASX MEA, BORAL LIMITED – ASX BLD, CSR LIMITED – ASX CSR, FLETCHER BUILDING LIMITED – ASX FBU, ADELAIDE BRIGHTON LIMITED – ASX ABC, DULUXGROUP LIMITED – ASX DLX, GWA GROUP LIMITED – ASX GWA, BLUESCOPE STEEL LIMITED – ASX BSL, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, LEND LEASE GROUP LIMITED – ASX LLC, MIRVAC GROUP – ASX MGR, STOCKLAND – ASX SGP, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Slowdown in east coast housing gathers speed

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Original article by Michael Bleby
The Australian Financial Review – Page: 33 : 26-Jul-18

Data from Domain Holdings shows that Australia’s median house price fell by one per cent to $802,077 in the June 2018 quarter. The median house price in Sydney eased 1.4 per cent in the quarter, to $1,144,217, with the median unit price down 0.5 per cent quarter-on-quarter. Sydney’s median house price was 4.5 per cent lower in the year to June, with the median unit price down 3.5 per cent. Meanwhile, the median house price in Melbourne fell by 1.8 per cent quarter-on-quarter, although it rose 0.5 per cent year-on-year.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, CORELOGIC AUSTRALIA PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET

NAB cuts house price forecasts for two years

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Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 13-Jul-18

National Australia Bank has revised its housing price forecasts for 2018 and 2019. The bank now expects house prices to fall by 1.8 per cent in 2018, compared to the 0.8 per cent decline it had forecast in April. NAB also predicts that the price of detached dwellings will fall by 0.1 per cent in 2019, having previously forecast an 0.8 per cent rise. It has also reported that property investor confidence has declined to a two-year low, while a recent ANZ/Property Council survey reported that the availability of housing finance has slumped over the past three months.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

House prices are falling faster than expected

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Original article by Sarah Turner
The Australian Financial Review – Page: 1 & 2 : 3-Jul-18

The ANZ Bank predicted in March that Australian house prices would rise by two per cent over the course of 2018, but it now expects a decline of four per cent. The bank also expects house prices to fall by two per cent in 2019. National Australia Bank is also more pessimistic about the housing market than it was in March, while Paul Dale of Capital Economics notes that the banking royal commission has already seen banks tighten their lending standards. He says house prices could potentially fall by about five per cent in 2018-19.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CAPITAL ECONOMICS LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, BIS OXFORD ECONOMICS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CORELOGIC AUSTRALIA PTY LTD, LAMINAR CAPITAL, LAZARD PTY LTD, RESERVE BANK OF AUSTRALIA

Sydney prices end 2017-18 down 5pc

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 3 : 2-Jul-18

Figures to be released by Corelogic on 2 July are expected to show that Sydney house prices fell by around five per cent in the 2017-18 financial year. Melbourne house prices are tipped to have remained almost flat, while dwelling values in the five main capital city markets are expected to have declined by nearly two per cent. Preliminary figures indicate that the national auction clearance rate for the weekend of 30 June-1 July was 56.7 per cent, compared with a clearance rate of 67.3 per cent for the corresponding period in 2017.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, BELLE PROPERTY PTY LTD