Minimum wage nowhere near keeping pace with rents

Original article by Killian Plastow
The New Daily – Page: Online : 4-Jun-19

The Fair Work Commission cited a fall in inflation, which is measured by the Consumer Price Index, as the reason for a smaller increase in the minimum wage in 2019 than in 2018. Anglicare executive director Kasy Chambers notes that the CPI is based on a ‘basket of goods’ that does not include rent or housing costs. She says the CPI has only increased by 63 per cent since 1998, while housing costs have risen by 300 per cent over the same period. Australian Bureau of Statistics chief economist Bruce Hockman notes that there are other data sets that examine the sort of housing costs that Anglicare is referring to, but that the CPI was not intended to measure them.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, ANGLICARE AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS

Don’t worry if house prices fall, says Bowen

Original article by Turi Condon, Ben Packham, Greg Brown
The Australian – Page: 1 & 6 : 16-May-19

Property Council of Australia president Stephen Conry says the housing market is "fragile", and it is not the right time for Labor’s proposed changes to the negative gearing regime. Real Estate Institute of Australia president Adrian Kelly warns that the prices of existing properties will fall if Labor implements its reforms, while the Housing Industry Association’s chief economist Tim Reardon says housing rents will rise. Meanwhile, shadow treasurer Chris Bowen has downplayed concerns that homeowners may find themselves in negative equity, arguing that they will only incur a loss if they sell.

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PROPERTY COUNCIL OF AUSTRALIA LIMITED, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, SQM RESEARCH PTY LTD

Flat incomes, cost of living take harsh toll

Original article by Michael Bleby
The Australian Financial Review – Page: 31 : 5-Feb-18

ME Bank’s latest survey of mortgage holders has found that 46 per cent are spending at least 30 per cent of their disposable income on meeting loan repayments. Although the percentage was slightly down on its previous survey in June 2017, ME Bank noted increased mortgage stress among lower-income households due to greater living costs and little or no increase in wages. ME Bank also found that the percentage of renters who are paying 30 per cent or more of their disposable income on rent payments has increased from 69 per cent to 72 per cent.

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ME BANK, JP MORGAN AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD

Sydney unit rents on par with houses as affordability bites

Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 20-Jul-17

Data from Domain Group shows that the median weekly rent for apartments in Sydney rose by 4.8 per cent in the year to June 2017. The median weekly rent for detached houses increased by 3.8 per cent. Meanwhile, the median weekly rent for apartments and houses in Melbourne increased by 5.3 per cent and five per cent respectively. The figures also show that the median house price in Sydney rose by 1.6 per cent to a new high of $A1,178,417 in the June quarter, while the median price in Melbourne rose 3.5 per cent to $A865,712.

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

Gearing proposal won’t hit renters

Original article by Michael Bleby
The Australian Financial Review – Page: 36 : 23-Jun-16

Research suggests that the Australian Labor Party’s proposal to impose restrictions on negative gearing would have limited impact on rents. A study conducted by SQM Research suggests that rents would remain largely unchanged for the next few years, due to extra supply. SQM Research MD Louis Christopher calculated that the proposed policy would result in a rise of 1.2 percentage points in average rental yields. An adjustment of either rents rising or prices falling would happen only after four years of the new rules being in operation.

CORPORATES
SQM RESEARCH PTY LTD, AUSTRALIAN LABOR PARTY

Rental growth slows to 20-year low

Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 11-Sep-15

CoreLogic RP Data has reported that growth in asking rents for residential properties across Australia fell by 0.4 per cent overall in August 2014, compared with a 0.3 per cent fall in July. Growth in asking rents eased to 0.7 per cent year-on-year. Sydney was the only capital city to record a rise in asking rents during August. Cameron Kusher of CoreLogic RP Data cites factors such as slowing population growth and continued strong construction activity.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Premier Investments in fight to get the right lease deals

Original article by Robert Harley
The Australian Financial Review – Page: 40 : 24-Mar-15

Australian-listed Premier Investments boasts more than 1,000 retail stores. The group’s rent bill for the first half of 2014-15 rose by 6.7 per cent to $A99.3m. CEO Mark McInnes notes that this accounted for 20 per cent of its sales revenue. He says Premier is prepared to close stores if landlords are not willing to offer the market rent when leases are renewed. The group closed a Just Jeans store in Melbourne as a result

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PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, JAY JAY’S JEANS WAREHOUSE PTY LTD, PORTMANS PTY LTD, JACQUI E PTY LTD, DOTTI

Landlords hit by glut of apartments

Original article by Michael Bleby,Samantha Hutchinson
The Australian Financial Review – Page: 5 : 21-Aug-14

The growth of the apartment market in Sydney and Melbourne has prompted a sharp downturn in rental income for landlords. RP Data notes that there has been a 6.4 per cent fall in weekly advertised rents for apartments in Melbourne’s Southbank precinct in the last year, and a 3.6 per cent fall in the Docklands. Property consultant Margaret Lomas says demand for apartments in Melbourne is significantly outpacing supply

CORPORATES
RP DATA LIMITED,CORELOGIC AUSTRALIA PTY LTD,DESTINY PROPERTIES PTY LTD,VICTORIA. DEPT OF TRANSPORT, PLANNING AND LOCAL INFRASTRUCTURE