REAL ESTATE – PRICES – AUSTRALIA

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

Housing price rises to halve, says NAB

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Original article by Elizabeth Redman
The Australian – Page: 6 : 14-Jul-17

National Australia Bank forecasts that house prices in the nation’s capital cities will rise by just five per cent in 2017, compared with growth of 11.6 per cent in 2016. NAB also expects growth in apartment prices to fall from 5.9 per cent in 2016 to three per cent. Chief economist Alan Oster says growth in residential property prices will be constrained by factors such as low growth in wages, the high level of dwelling construction and measures aimed at curbing foreign investment in the housing market.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, CORELOGIC AUSTRALIA PTY LTD, MORTGAGE CHOICE LIMITED – ASX MOC

Property price growth set to halve

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Original article by Matthew Cranston, Michael Bleby
The Australian Financial Review – Page: 1 & 30 : 13-Jul-17

A new survey of property industry professionals shows that most expect a slowdown in residential property price growth in the next 12 months. The ANZ/Property Council of Australia index of house price growth expectations has fallen from 20.2 points to 4.3 points. The anticipated slowdown is particularly acute in Sydney, with house price growth expectations falling from 29.6 points to 1.7 points. The survey also shows that property professionals are bearish about the outlook for capital growth in the retail property sector.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, MOODY’S ANALYTICS AUSTRALIA PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, BIS SHRAPNEL PTY LTD, RAY WHITE GROUP, AVENTUS PROPERTY GROUP PTY LTD, QUINTESSENTIAL EQUITY PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

House prices face turning point: HSBC

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Original article by James Frost
The Australian Financial Review – Page: 3 : 7-Jul-17

HSBC expects house prices in Sydney to rise by between 14 and 16 per cent in 2017, while apartment prices will rise by between 10 and 12 per cent. Growth in house and apartment prices is expected to moderate in 2018. HSBC’s forecasts for Melbourne are similar to Sydney for house prices, but it is predicting that apartment prices in Melbourne could fall by as much as three per cent in 2017 and by up to four per cent in 2018. Nationally, HSBC expects house prices to rise by between eight and 10 per cent in 2017, before rising by between three and six per cent in 2018.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Household debt hits all-time high

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 4-Jul-17

Australia’s household debt-to-income ratio rose to a new high of 190.4 per cent in the March 2017 quarter. Treasurer Scott Morrison has indicated that rising household debt was a key factor for the Federal Government in backing new regulatory measures aimed at curbing interest-only loans for property investors. He has warned of the economic impact if the nation’s residential property market experienced a "hard landing". He adds that the Opposition’s proposed negative gearing reforms would have heightened the risk of a hard landing.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD

RBA worries property could spark downturn

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Original article by Jacob Greber
The Australian Financial Review – Page: 2 : 21-Jun-17

The minutes of the Reserve Bank’s June 2017 monetary policy meeting show that board members are concerned about the potential impact of rising household debt and residential property prices on economic growth. Concerns were also raised that financial stability could be undermined by record low interest rates. Board members also stressed the need for continued co-operation between the central bank and other regulatory agencies, such as the Australian Prudential Regulation Authority.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COUNCIL OF FINANCIAL REGULATORS, UNITED STATES. FEDERAL RESERVE BOARD