REAL ESTATE – PRICES – AUSTRALIA

Housing prices to drop 7pc, bank says

roymorgansocial Leave a comment

Original article by Elizabeth Redman, Daniel Palmer
The Australian – Page: 1 & 6 : 4-May-17

Data from REA Group shows that housing demand in New South Wales declined by 7.8 per cent month-on-month in April 2017, while demand among house buyers in Victoria fell 1.6 per cent. Meanwhile, Citigroup has forecast that residential property prices could fall by up to seven per cent in 2018, with apartment prices in Melbourne and Sydney regarded as the most vulnerable to a correction. However, the investment bank adds that any downturn in the property market is unlikely to impact on the broader economy.

CORPORATES
REA GROUP LIMITED – ASX REA, REALESTATE.COM.AU, CITIGROUP PTY LTD, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBS HOLDINGS PTY LTD, STOCKLAND – ASX SGP

‘Calling the top’ of the boom in property

roymorgansocial Leave a comment

Original article by Matthew Cranston
The Australian Financial Review – Page: 1 & 3 : 24-Apr-17

UBS is of the view that the Australia housing market may have reached its peak, although any easing will amount to a correction rather than a collapse. Auction clearance rates on the weekend of 22-23 April 2017 suggest that UBS’s forecast may be on the mark, with Sydney recording its lowest auction clearance rate since the beginning of the year. However, not everyone agrees with UBS, with analyst Louis Christopher saying it is too early to tell.

CORPORATES
UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CORELOGIC AUSTRALIA PTY LTD, RAY WHITE REAL ESTATE, DOMAIN.COM.AU, DEVINE REAL ESTATE HOLDINGS PTY LTD, BELLE PROPERTY PTY LTD

Why the gloom merchants got housing wrong

roymorgansocial Leave a comment

Original article by Larry Schlesinger
The Australian Financial Review – Page: 3 : 4-Jan-17

Property prices are still rising, despite predictions of a decline. CoreLogic’s Home Value Index for December 2016 shows that they rose 10.9 per cent in the five main capital cities in 2016. They increased eight per cent in 2015. Louis Christopher, of SQM Research, says house prices are rising because of factors such as low interest rates, population growth and inadequate supply.

CORPORATES
SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, DOMAIN.COM.AU, MACQUARIE GROUP LIMITED – ASX MQG, BIS SHRAPNEL PTY LTD, MACRO ASSOCIATES PTY LTD, CITI AUSTRALIA PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD

Negative gearing not to blame

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

Negative gearing not to blame

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

Banks on S&P negative watch over hot property

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 11 & 15 : 1-Nov-16

Factors such as rising household debt and residential property prices have prompted Standard & Poor’s to downgrade Australia’s economic risk trends. The firm has also downgraded the credit rating outlook of 25 local lenders to "negative". S&P downgraded the major banks’ rating outlooks to "negative" in mid-2016, but it has not yet made any further changes. However, their "AA-" credit ratings could be reviewed, particularly if Australia implements new global regulations regarding bank bailouts.

CORPORATES
STANDARD AND POOR’S CORPORATION, MACQUARIE BANK LIMITED – ASX MBL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, RESERVE BANK OF AUSTRALIA

Lowe: RBA can only do so much

roymorgansocial Leave a comment

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 23-Sep-16

Reserve Bank of Australia governor Philip Lowe sees the role of the central bank as primarily dealing with inflation. He told members of the House of Representatives economics committee in Sydney on 22 September 2016 that interest rate cuts can only have a limited impact on the property market. Lowe said house prices are high because of inadequate supply and easy access to credit.

CORPORATES
RESERVE BANK OF AUSTRALIA

Sydney, Melbourne price surge continues

roymorgansocial Leave a comment

Original article by Su-Lin Tan
The Australian Financial Review – Page: 11 : 2-Sep-16

House prices in Sydney and Melbourne are still rising, and this trend has a negative impact on affordability which has fallen to an all-time low. Corelogic Home Value Index shows that house prices in Sydney rose 1.5 per cent while Melbourne prices increased 1.4 per cent in August 2016. Corelogic head of research Tim Lawless said the problem of low affordability necessitates the creation of a ministry of housing at the federal level.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, SQM RESEARCH PTY LTD, MACQUARIE CAPITAL PTY LTD, MISSION AUSTRALIA

House prices to keep increasing says Symond

roymorgansocial Leave a comment

Original article by Su-Lin Tan
The Australian Financial Review – Page: 33 : 11-Aug-16

Aussie Home Loans chairman John Symond says the residential property market is "still healthy." He believes that house prices may rise by 10 to 15 per cent for the next three years. Prospects for detached housing bought by owner-occupiers on Australia’s east coast are quite solid, but apartments will underperform because of oversupply, which is particularly evident in western and inner-south suburbs of Sydney and Docklands in Melbourne.

CORPORATES
AUSSIE HOME LOANS LIMITED, AUSTRALIAN BUREAU OF STATISTICS

RBA cuts, dismissing property bubble risk

roymorgansocial Leave a comment

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 3-Aug-16

Financial markets believe there is a 52 per cent chance that the Reserve Bank will reduce official interest rates to 1.25 per cent by November 2016, after the cash rate was cut by 25 basis points to 1.5 per cent on 2 August. The central bank has now reduced the cash rate by 3.25 per cent during the current monetary policy easing cycle, which began in late 2011. The RBA has warned that inflation is likely to remain low for some time, and noted that a housing price bubble now appears to be unlikely.

CORPORATES
RESERVE BANK OF AUSTRALIA