REAL ESTATE – PRICES – AUSTRALIA

Banks on S&P negative watch over hot property

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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

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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

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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

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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

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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

Rates cut on cards as economy loses gloss

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Original article by David Uren
The Australian – Page: 2 : 2-Aug-16

The Reserve Bank of Australia is widely tipped to reduce official interest rates to a new low of 1.5 per cent on 2 August 2016. The central bank’s monetary policy easing cycle began in November 2011, and it has since reduced the cash rate 11 times. Factors such as Australia’s low inflation rate and the uncertain outlook for the US and Chinese economies may prompt another cut. However, Tim Lawless of CoreLogic says the RBA will be mindful that a rate cut could put more upward pressure on house prices.

CORPORATES
RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, REUTERS HOLDINGS PLC

Nation’s home values fall for first time in 14 quarters

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Original article by Michael Bleby
The Australian Financial Review – Page: 32 : 22-Jun-16

Residential property prices in Australia’s eight capital cities fell by 0.2 in the March 2016 quarter, according to new data from the Australian Bureau of Statistics. The index of dwelling values had not fallen since the September 2014 quarter. There was an 0.8 per cent decline in the value of attached dwellings compared with the December 2015 quarter, including a fall of 0.6 per cent in Sydney. Paul Bloxham of HSBC expects a sharp fall in house price growth in both Sydney and Melbourne in the near-term.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, HSBC AUSTRALIA HOLDINGS PTY LTD, BELLE PROPERTY PTY LTD, SAVILLS CORDEAU MARSHALL

Shorten’s policies ‘to cut house prices’

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Original article by Sid Maher
The Australian – Page: 1 & 8 : 21-Jun-16

Adept Economics has released the results of independent modelling which suggests that house prices would fall by an average of four per cent if the Australian Labor Party’s proposed changes to the negative gearing and capital gains tax regimes are implemented. The modelling also suggests that apartments in inner-city regions could fall be up to five per cent. The report, which was produced on behalf of Walshs Financial Planning, concludes that there are risks associated with the policy, and changes should be made if Labor wins the 2016 federal election.

CORPORATES
ADEPT ECONOMICS, WALSHS FINANCIAL PLANNING PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, GRATTAN INSTITUTE, URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA

House prices edge up in April

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 3 : 3-May-16

The CoreLogic RP Data Home Value index was 1.7 per cent higher in April 2016 than in March. House prices rose by 2.4 per cent in Sydney during April, while prices in Brisbane and Adelaide increased by 2.2 per cent and 2.0 per cent respectively. House prices in Melbourne rose by a more modest 1.1 per cent, but house prices declined in both Hobart and Darwin. Meanwhile, the gross rental yield for residential properties in the capital cities fell to a new low of 3.4 per cent in April.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Don’t panic about property, HSBC says

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Original article by Michael Bleby
The Australian Financial Review – Page: 7 : 13-Apr-16

HSBC economist Paul Bloxham says that while Australia’s booming residential construction market faces a number of potential risks, these can be managed. He argues that when the construction boom wanes it will be replaced by growth in the services industry as a driver of the economy. House prices increased by nine per cent in 2015, but Bloxham forecasts growth of 3-4 per cent in 2016.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, BLOOMBERG LP, RESERVE BANK OF AUSTRALIA