REAL ESTATE – PRICES – AUSTRALIA

Labor to stick with negative gearing policy

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Original article by Andrew Tillett, Misa Han
The Australian Financial Review – Page: 4 : 9-Jan-18

The Australian Labor Party has argued that a Treasury analysis produced almost two years ago demonstrates that its policy on negative gearing will boost housing affordability. The analysis, which was obtained under Freedom of Information laws, concluded that Labor’s proposed changes to the negative gearing and capital gains tax regimes would have relatively little negative effect on house prices. Shadow treasurer Chris Bowen has indicated that the proposed reforms will be part of Labor’s policy platform at the next federal election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, PROPERTY COUNCIL OF AUSTRALIA LIMITED

Australia rises in housing list

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Original article by Elizabeth Redman
The Australian – Page: 23 : 7-Dec-17

Iceland heads Knight Frank’s latest Global House Price Index, with annualised growth of 20.4 per in the September quarter. Australia is ranked seventh in the list, compared with 11th in the June quarter, with house price growth of 10.2 per cent year-on-year and 1.9 per cent in the three months to September. The data shows that house prices have risen by 5.1 per cent globally over the last year.

CORPORATES
KNIGHT FRANK

House prices to fall further: economists

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 6 : 5-Dec-17

UBS says the Reserve Bank of Australia is unlikely to reduce official interest rates in the near-term, despite data showing that house prices in Sydney fell by 1.3 per cent in the three months to November. UBS notes that in the past the RBA has frequently reduced the cash rate in response to a sharp fall in house prices. The firm adds that a further downturn in house prices is likely. Meanwhile, LF Economics expects the royal commission into the banking sector to have a significant impact on house prices.

CORPORATES
UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, LF ECONOMICS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Sydney’s superstar house prices explained

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Original article by Vesna Poljak
The Australian Financial Review – Page: 13 : 23-Nov-17

Reserve Bank governor Philip Lowe says there are certain cities whose house prices increase a lot more than other cities in their countries. Lowe says this trend has been observed by his colleagues at other central banks, and the general consensus is that people are willing to pay higher prices for houses in some cities because of increased "economic or social returns" to be gained by living in them . Such places have been dubbed "superstar" cities, and Lowe says they include cities such as Sydney, Melbourne, Vancouver, Toronto, and San Francisco

CORPORATES
RESERVE BANK OF AUSTRALIA, ST GEORGE BANK LIMITED, AUSTRALIAN BUSINESS ECONOMISTS INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD

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

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

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

Affordability likely to stall for 40 years

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 29-Aug-17

Housing affordability may not improve for another four decades, according to the Committee for Economic Development of Australia. Factors that may bring about an improvement include increases in capital gains tax and more supply of land for housing. The CEDA also expects the proportion of Australians living in capital cities to rise in coming decades, and notes that this may only serve to increase wealth inequality, while low-income workers will struggle to find accommodation in large cities. The CEDA notes that the housing market appears to be geared to producing homes at a lower rate than is needed, thereby contributing to higher prices and reduced affordability.

CORPORATES
COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA

Housing supply ‘does not lower prices’

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 32 : 24-Jul-17

House price and new home approval figures for 2016 seem to bear out the view of Joe Flood that boosting housing supply does not lead to lower prices. New home commencements rose by 14,000, but house prices showed no sign of falling, particularly in Sydney and Melbourne. Flood, who works for affordable home supplier Community Housing, says governments may need to develop a revised version of the National Rental Affordability Scheme, while curbs on housing finance and tax changes could also help the situation.

CORPORATES
COMMUNITY HOUSING LIMITED, CURTIN UNIVERSITY OF TECHNOLOGY, UNIVERSITY OF NEW SOUTH WALES

Sydney unit rents on par with houses as affordability bites

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 20-Jul-17

Data from Domain Group shows that the median weekly rent for apartments in Sydney rose by 4.8 per cent in the year to June 2017. The median weekly rent for detached houses increased by 3.8 per cent. Meanwhile, the median weekly rent for apartments and houses in Melbourne increased by 5.3 per cent and five per cent respectively. The figures also show that the median house price in Sydney rose by 1.6 per cent to a new high of $A1,178,417 in the June quarter, while the median price in Melbourne rose 3.5 per cent to $A865,712.

CORPORATES
DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ