Sydney house prices forecast to grow 7pc

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 3 : 27-Jun-19

Domain Group is upbeat about the outlook for Australia’s residential property market, forecasting that prices will rebound by the end of 2019. Domain economist Trent Wiltshire says the Coalition’s federal election win, official interest rate cuts and the prospect of changes to mortgage serviceability tests bode well for housing prices. Domain forecasts that house prices in Sydney will rise two per cent in the second half of 2019 and up to five per cent in 2020, while prices in Melbourne will rise by one per cent by year’s end and 1-3 per cent in 2020.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, MOODY’S ANALYTICS AUSTRALIA PTY LTD, CORELOGIC AUSTRALIA PTY LTD

Affordability still an issue for most home owners

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 34 : 11-Jun-19

A survey by ME Bank shows that 88 per cent of Australians regard housing affordability as a major concern. The survey also found that 94 per cent of first-home buyers are concerned about housing affordability, compared with 87 per cent of owner-occupiers and 83 per cent of property investors. The survey was undertaken in late April, prior to the re-election of the Coalition and the recent reduction in official interest rates.

CORPORATES
ME BANK, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Housing at its most affordable

Original article by Mackenzie Scott, Samantha Bailey
The Australian – Page: 2 : 7-Jun-19

The ANZ-CoreLogic Housing Affordability report shows that Sydney and Melbourne are still the least affordable markets in Australia for buying a home. However, the report notes that overall, housing affordability has reached its highest level since December 2016. The downturn in the housing market also means that it is cheaper to buy rather than rent in many suburbs across Australia. The report is based on housing data from December 2018.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CORELOGIC AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Confidence returning as housing hits the bottom

Original article by Ben Wilmot, Mackenzie Scott
The Australian – Page: 17 & 21 : 5-Jun-19

Shane Oliver of AMP Capital says the downturn in the residential property market is likely to reach its bottom earlier than expected, citing factors such as the Reserve Bank’s interest rate cut and the outcome of the recent federal election. Tim Lawless of CoreLogic also anticipates an upturn in the housing market, although he adds that economic uncertainty means a rebound in house prices is unlikely in the near-term.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD, McGRATH LIMITED – ASX MEA, MORGAN STANLEY AUSTRALIA LIMITED, CBRE PTY LTD, PLACE ESTATE AGENTS

Property slump has another year: S&P

Original article by Richard Gluyas
The Australian – Page: Online : 4-Jun-19

Credit ratings agency Standard & Poor’s says factors such as the Coalition’s election win and a likely official interest rate cut in June will bolster the residential property market. However, the firm does not expect houses prices in Melbourne and Sydney to rebound for another 6-12 months, while George Tharenou of UBS forecasts that house prices will stabilise later in 2019. New data from CoreLogic shows that house prices fell by 0.4 per cent in May, and by 7.3 per cent year-on-year.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, UBS HOLDINGS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Housing recovery on cards, says HSBC

Original article by Ben Wilmot
The Australian – Page: 23 : 29-May-19

Paul Bloxham of HSBC notes that Australian house prices have fallen by an average of eight per cent since the current downturn began. Prices in Sydney have fallen by 15 per cent, while prices in Melbourne are down 11 per cent. However, Bloxham says house prices are likely to stabilise during the second half of 2019 before improving in 2020. He says factors that should boost the market include the prospect of official interest rate cuts and the re-elected Coalition government’s proposed first-home buyers loan scheme.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, AMP CAPITAL INVESTORS LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA

Rate cut to end house price slide

Original article by Matthew Cranston, Ingrid Fuary-Wagner
The Australian Financial Review – Page: 1 & 5 : 28-May-19

AMP Capital’s Shane Oliver now expects the housing market to bottom in the second half of 2019, rather than in 2020. He says factors such as the prospect of an official interest rate cut and the federal government’s First Home Loan Deposit Scheme will contribute to the end of the correction in house prices. Meanwhile, economist Stephen Koukoulas forecasts that house prices will bottom in the September quarter before rising in the final three months of 2019. Paul Bloxham of HSBC notes that the housing market correction has been orderly, with low levels of distressed sales and mortgage arrears.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Agents feel post-election pick-up

Original article by Michael Bleby, Tim Boyd
The Australian Financial Review – Page: 3 : 24-May-19

AMP Capital’s chief economist Shane Oliver is predicting that Sydney and Melbourne house prices will not fall as far as previously expected, and that prices will bottom out by the end of 2019, rather than during 2020. Oliver cites the federal election result, which put an end to uncertainty regarding negative gearing and capital gains tax, as one reason for his change of forecast. Other factors that suggest a pickup in housing sentiment include expectations that the Reserve Bank will cut interest rates soon and the Coalition government’s plan to assist first-home buyers.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY

Bouris calling with a warning about Labor

Original article by Simon Benson
The Australian – Page: 8 : 17-May-19

Wizard Home Loans founder Mark Bouris has attracted scrutiny from the Australian Electoral Commission for targeting voters via a robo-calling campaign. Bouris, who is not a candidate in the federal election, used automated phone calling technology to contact 200,000 households in marginal electorates. He warned that Labor’s proposed negative gearing and capital gains tax reforms would see house prices fall. Bouris has stressed that he was not acting on behalf of any political party.

CORPORATES
AUSTRALIAN ELECTORAL COMMISSION, AUSTRALIAN LABOR PARTY, WIZARD HOME LOANS, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, LIBERAL PARTY OF AUSTRALIA

Warning as housing stock piles up

Original article by Ben Wilmot
The Australian – Page: 25 : 17-May-19

Data from CoreLogic shows that based on current rates of sales, housing supply across Australia’s capital cities is currently 5.3 months, up from 3.9 months a year ago. Meanwhile, Macquarie Equities says Reserve Bank data suggests that 2.5-3.5 per cent of house buyers with bank-issued mortgage loans are in negative equity following the downturn in the housing market. RiskWise Property Research CEO Doron Peleg says Labor’s proposed changes to the negative gearing and capital gains tax regimes would make residential property investment less attractive.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, MACQUARIE EQUITIES LIMITED, RESERVE BANK OF AUSTRALIA, RISKWISE PROPERTY RESEARCH, AUSTRALIAN LABOR PARTY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, GRATTAN INSTITUTE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, STARR PARTNERS PTY LTD, MASTER BUILDERS AUSTRALIA INCORPORATED