REAL ESTATE – PRICES – AUSTRALIA

Cooling inflation, stable rates may encourage buyers

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 & 30 : 7-Feb-24

Tim Lawless of CoreLogic says the Reserve Bank’s decision to leave the cash rate unchanged on Tuesday could prompt an upturn in house buying activity. He notes that house prices remain below their peaks in Sydney, Melbourne, Hobart, Darwin and the ACT; Lawless says that some buyers may capitalise on this to buy into the market before interest rates fall. Judo Bank’s chief economic adviser Warren Hogan says the rental housing market is still a major concern, while SQM Research MD Louis Christopher warns that rising rents could put upward pressure on inflation.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, JUDO BANK PTY LTD, SQM RESEARCH PTY LTD

House prices could dip before next rate cut

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Original article by Nila Sweeney
The Australian Financial Review – Page: 32 : 30-Nov-23

Domain Holdings is upbeat about Australia’s residential market, forecasting that house prices will rise by seven per cent nationally in 2024. Dwelling prices in Sydney are tipped to rise by up to nine per cent, while prices in Melbourne are expected to gain four per cent. Nicola Powell from Domain says house prices could fall in early 2024, particularly if there is another interest rate rise and inflation remains high. Powell adds that dwelling prices could rebound if there is an interest rate cut later in the year.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA

No housing crash, just a slowdown say economists

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Original article by Michael Bleby
The Australian Financial Review – Page: 28 : 8-Nov-23

PEXA’s chief economist Julie Toth says the latest increase in the cash rate is likely to result in a pause in house price growth, as was the case at the start of the current monetary policy tightening cycle. However, Toth does not expect house prices to fall, adding that the rate rise is likely to trigger a new wave of mortgage refinancing. Tim Lawless of CoreLogic says the 13th interest rate rise since May 2022 is likely to further dampen consumer sentiment; he notes that consumer confidence has been at "very pessimistic" levels for nearly 18 months and has a close correlation with housing activity.

CORPORATES
PEXA GROUP LIMITED – ASX PXA, CORELOGIC AUSTRALIA PTY LTD

Homes in 33pc of Sydney now twice the price

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Original article by Nila Sweeney
The Australian Financial Review – Page: 32 : 23-Aug-23

Data from CoreLogic shows that the prices of homes in 12.1 per cent of suburbs across Australia have doubled over the last decade. However, the value of units has increased by a similar amount in just two per cent of suburbs nationwide. CoreLogic’s figures also show that house prices in 163 suburbs in Sydney have more than doubled in the last decade, led by South Turramurra with a gain of 151 per cent in the last 10 years. Meanwhile, Melbourne house prices have doubled in the Mornington Peninsula suburbs of Dromana, Frankston North and Sorrento.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Housing market on knife edge despite rate pause

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 & 32 : 5-Jul-23

SQM Research MD Louis Christopher expects sentiment in the housing market to remain cautious in the near-term, despite the Reserve Bank’s latest interest rate pause. He is of the view that sentiment will not improve until there is a longer pause. Shane Oliver from AMP Capital anticipates that any upturn in housing market activity arising from the second interest rate pause since April is likely to be temporary. He adds that further interest rate increases could put renewed downward pressure on house prices.

CORPORATES
RESERVE BANK OF AUSTRALIA, SQM RESEARCH PTY LTD, AMP CAPITAL INVESTORS LIMITED

Rate pause to spur buyers back into market

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Original article by Nila Sweeney
The Australian Financial Review – Page: 31 : 5-Apr-23

SQM Research MD Louis Christopher says the firm believes that the cash rate has peaked following the Reserve Bank’s decision to leave it on hold at 3.6 per cent on Tuesday. He adds that the widely-anticipated rate pause could prompt buyers to return to the housing market, including renters and investors. Christopher adds that house prices could rise by 3-7 per cent nationwide in 2023 if the cash rate remains on hold. Tim Lawless of CoreLogic agrees that the rate pause could encourage vendors and buyers to return to the market.

CORPORATES
SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA

Fall in house prices stalls but reprieve may be short-lived

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Original article by Rachel Clun, Shane Wright
The Sydney Morning Herald – Page: Online : 1-Mar-23

Data from CoreLogic shows that home values fell by just 0.14 per cent nationwide in February, which is the lowest decline since the Reserve Bank of Australia began to increase the cash rate in May 2022. Sydney was the only capital city to record a rise in house values in February, up 0.3 per cent; however, house values fell by less than 0.5 per cent in all other capitals except Hobart, which recorded a decline of 1.4 per cent. Tim Lawless of CoreLogic warns that the decline in house values may accelerate as the full impact of nine consecutive interest rate rises takes effect.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

Property tipped to drop 10pc

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Original article by Mackenzie Scott
The Australian – Page: 6 : 7-Feb-23

Cameron Kusher of PropTrack says the firm expects dwelling prices to fall by up to 10 per cent nationally in 2023. He says house prices in the largest capital cities are likely to fall the most, with a downturn of 8-11 per cent in Sydney and 7-10 per cent in Melbourne. Kusher adds that house prices in regional areas are also likely to fall, given that they have recorded stronger than capital cities and demand for homes in regional areas is slowing. PropTrack has factored in two interest rate rises in 2023, and Kusher says a rate cut late in the year is a "very real possibility".

CORPORATES
PROPTRACK PTY LTD

Home values drop in 80pc of suburbs

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 : 19-Jan-23

Data from CoreLogic shows that dwelling values fell in more than eight out of 10 suburbs across Australia in the last three months of 2022. Some 98 per cent of Sydney suburbs recorded a fall in house prices in the December quarter, down from 100 per cent in the September quarter; the value of units fell in 93.2 per cent of suburbs in the harbour city, compared with 95.7 per cent of suburbs in the September quarter. Likewise, house prices fell in 98.4 per cent of Melbourne suburbs (also down from 100 per cent in the three months to September), and unit values fell in 78.8 per cent of suburbs (down from 88.4 per cent in the previous quarter).

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

House prices plunge 8.4pc from peak

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 : 10-Jan-23

Data from CoreLogic shows that house prices have fallen by 8.4 per cent nationally since peaking in May. Eliza Owen of CoreLogic says the sharp decline is primarily due to the aggressive monetary policy tightening cycle, noting that interest rates have not increased so quickly in more than three decades. She anticipates a further market downturn in coming months, given that more interest rate rises are likely, and suggests that a double-digit fall in national house prices is possible. Sydney has recorded a 13 per cent fall in house prices, while prices in Melbourne are down 8.6 per cent peak-to-trough.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD