REAL ESTATE – PRICES – AUSTRALIA

Predictor of housing boom feels chill in air

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 31 : 19-Oct-15

SQM Research MD Louis Christopher forecasts that Melbourne’s residential property market will be the strongest performer in 2016, with price growth of up to 13 per cent. However, growth in prices across the capital cities is expected to average 3-8 per cent, compared with nine per cent growth in the last year. Christopher expects a slowdown in the Sydney market to dampen growth nationally, although he says a major slump in house prices will not occur.

CORPORATES
SQM RESEARCH PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC

Steinert makes contrarian call on prices

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 42 : 14-Oct-15

Macquarie Group recently forecast that Australian house prices will fall by 7.5 per in 2016, while AMP Capital expects further price growth in 2016 before a 5-10 downturn in 2017. Meanwhile, Stockland CEO Mark Steinert says a number of factors support the case for further growth in house prices, including the lower Australian dollar, a relatively strong domestic economy and continued population growth. He anticipates that house prices will rise by 3-5 per cent in 2016.

CORPORATES
STOCKLAND – ASX SGP, MACQUARIE GROUP LIMITED – ASX MQG, AMP CAPITAL INVESTORS LIMITED, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIANSUPER PTY LTD

Sydney, Melbourne tipped to slow

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 40 : 6-Oct-15

Valuation firm Propell has forecast that growth in house prices in Sydney will slow to five per cent in the next year, after rising by 18.6 per cent in the last 12 months. Likewise, house price growth in Melbourne is tipped to slow from 11.5 per cent to five per cent. Meanwhile, apartment prices in Sydney and Melbourne are expected to increase by about five per cent and two per cent respectively.

CORPORATES
PROPELL NATIONAL VALUERS PTY LTD

Median house price in Sydney tops $1m

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 23-Jul-15

New data from Domain Group shows that the median house price in Sydney rose by 22.9 per cent in 2014-15, to a record high of slightly more than $A1m. The harbour city’s median house price was just $A814,285 in 2013-14. Meanwhile, Sydney’s median apartment price rose by 13.9 per cent to $A656,078. Housing remains more affordable in Melbourne, with the median price of houses rising by 10.3 per cent to $A668,030 and apartment prices rising by 4.5 per cent to $A443,549.

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

Melbourne may ‘outpace’ Sydney prices

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Original article by Robert Harley
The Australian Financial Review – Page: 32 : 14-Jul-15

A report from property valuation firm Propell suggests that house prices in Sydney and Melbourne will rise by 10 per cent and eight per cent respectively during the next 12 months. However, the firm notes that there is the potential for stronger house prices in Melbourne than in Sydney, as house price growth in the latter city may be moderating. Meanwhile, Propell forecasts five per cent growth in Sydney apartment prices and just one per cent growth in Melbourne.

CORPORATES
PROPELL NATIONAL VALUERS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Cities report warns of growing economic chasm

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Original article by Michael Bleby
The Australian Financial Review – Page: 44 : 9-Jul-15

A new report shows that factors such as access to transport infrastructure and centres of employment are influencing residential property prices in Australian cities. House prices in outer suburbs where access to such amenities is more limited are growing at a slower pace than those in inner suburbs. The Federal Government report warns that a social divide may develop between people who live in inner areas and those on the fringes of major cities.

CORPORATES
AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT

Housing data shows peak is over

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Original article by Robert Harley
The Australian Financial Review – Page: 38 : 1-Jul-15

Data from Domain Group shows that Sydney’s residential auction clearance rate eased from 83.3 per cent in May 2015 to 82.9 per cent in June. There was also a downturn in the median auction price. Meanwhile, the auction clearance rate in Melbourne rose from 78 per cent to 79.2 per cent in June, although the median dwelling price was 4.9 per cent lower than in May.

CORPORATES
DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ, HOUSING INDUSTRY ASSOCIATION LIMITED, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD

‘Crazy’ house prices won’t halt rate cut

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Original article by Jacob Greber, Matthew Cranston
The Australian Financial Review – Page: 1 & 6 : 11-Jun-15

There has been a 39 per cent increase in residential property prices in Sydney over the last three years. HSBC’s Paul Bloxham estimates that the cost of buying a house in Sydney has risen to around 5.5 times annual income over the last 10 years. In contrast, the cost of home ownership across Australia has remained steady at about 4.1 times income. Reserve Bank governor Glenn Stevens has not ruled out further interest rates, despite the fact that doing so could put further upward pressure on house prices, particularly in Sydney.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, HOUSING INDUSTRY ASSOCIATION LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN LABOR PARTY

Living in a $5m house, Hockey’s ‘affordable’ claim jars

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Original article by Phillip Coorey, Su-Lin Tan, Michael Bleby
The Australian Financial Review – Page: 1 & 4 : 10-Jun-15

Federal Treasurer Joe Hockey has been criticised for saying that people who want to buy their first home should start by getting a highly-paid job. He has also dismissed claims that residential property in Sydney has become unaffordable, arguing that if this were true people would not be buying homes. Australian Council of Social Service CEO Cassandra Goldie and Opposition Leader Bill Shorten are among those who have criticised Hockey.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS

Bubble call splits politics

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Original article by Sally Patten, Phillip Coorey, Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 3-Jun-15

Prime Minister Tony Abbott does not believe that Australia is experiencing a housing bubble, and has claimed that the Opposition wants house prices to fall. Meanwhile, financial system inquiry chairman David Murray has warned of the economic impact of a residential property market correction in Melbourne and Sydney. He expects the Australian Prudential Regulation Authority to pursue additional measures aimed at reining in lending to property investors.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, DELOITTE ACCESS ECONOMICS PTY LTD, MIRVAC GROUP – ASX MGR, LEND LEASE GROUP LIMITED – ASX LLC, AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN BUREAU OF STATISTICS