SUPPLY AND DEMAND

Demand soars in big cities as mining eases

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 44 : 6-Aug-15

Recent data on Australia’s commercial vacancy rates suggest that non-mining sectors are expanding. The Property Council of Australia’s "Office Market Report" for July 2015 shows that Sydney’s vacancy rate fell to 6.3 per cent in July, from 7.4 per cent in January. Sectors that are particularly active in the office market include educational institutions, insurance companies, banks, fintech hubs and government departments.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, TYRO PAYMENTS, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, MMJ REAL ESTATE PTY LTD, AUSTRALIAN TECHNICAL AND MANAGEMENT COLLEGE PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF QUEENSLAND LIMITED – ASX BOQ, KNIGHT FRANK AUSTRALIA PTY LTD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Jetstar says south-east Asia routes taking off

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Original article by Jamie Freed
The Australian Financial Review – Page: 26 : 6-Aug-15

Australians have changed their travel destinations, in response to the fall in the Australian dollar. Jetstar Group CEO Jayne Hrdlicka told the CAPA 2015 Australia-Pacific Aviation Summit in Sydney on 5 August 2015 that demand has shifted towards south-east Asia, which is cheaper that the US and Europe. Demand for domestic destinations is still subdued, but Hrdlicka expects an improvement over the next two years.

CORPORATES
JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, CENTRE FOR ASIA PACIFIC AVIATION, CHINA SOUTHERN AIRLINES COMPANY LIMITED

New house sales may have peaked

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Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 4-Aug-15

Sales of new detached homes across Australia topped 73,507 in 2014-15, compared with 72,706 in the previous financial year. Harley Dale of the Housing Industry Association says that while demand for detached homes will remain strong in 2015-16, sales are likely to be lower due to a dearth of land being released for development.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

Buyers scoop up all 191 units in western Sydney project

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 5 : 3-Aug-15

Sydney’s residential property market boast an clearance rate of 78.8 per cent for the week ended 2 August 2015, according to CoreLogic RP Data. The clearance rate in Melbourne was 76.8 per cent, while the national clearance rate was 75.7 per cent. Meanwhile, First Point Projects and St Hilliers First Point sold every apartment on offer in the Thornton Central residential project in the Sydney suburb of Penrith on 1 August.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, FIRST POINT PROJECTS PTY LTD, ST HILLIERS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN NATIONAL UNIVERSITY, HOUSING INDUSTRY ASSOCIATION LIMITED, McGRATH REAL ESTATE PTY LTD

Housing glut by 2018, BIS report warns

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Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 20-Jul-15

A BIS Shrapnel report forecasts an oversupply of at least 12,000 dwellings in Australia by 2018. The firm expects just 164,000 new homes to be built in 2018, compared with an estimated 210,000 in 2014-15. However, demand for housing in New South Wales will continue to exceed supply in coming years, while there will be an oversupply of apartments in Victoria and houses in Western Australia.

CORPORATES
BIS SHRAPNEL PTY LTD, HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Winter vortex warms retailers’ hearts

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Original article by Patrick Hatch
The Australian Financial Review – Page: 3 : 16-Jul-15

Australian retailers have enjoyed a surge in sales of warm clothing and heaters due to the onset of very cold weather in the eastern states in mid-July 2015. The Good Guys’ sales of portable heaters have risen by 20 per cent in Victoria and 22 per cent in New South Wales, while Melbourne clothing retailers Otto & Spike and The Coat Man have reported strong demand for their products. Bogong Equipment’s sales of skiing gear have also risen strongly.

CORPORATES
THE GOOD GUYS, OTTO AND SPIKE, THE COAT MAN, BOGONG EQUIPMENT PTY LTD, LMB KNITWEAR PTY LTD

Flagging energy in LNG sector tipped to last until 2022-23

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 1-Jul-15

Citigroup is bearish about the outlook for the LNG industry, forecasting that a global oversupply will be sustained until at least 2022. The firm also expects growth in spot and contract prices for LNG to remain subdued in the long-term. Meanwhile, it anticipates that a number of projects in the sector will be delayed, including the Woodside Petroleum-led Browse floating LNG venture and ExxonMobil’s Papua New Guinea project.

CORPORATES
CITIGROUP INCORPORATED, WOODSIDE PETROLEUM LIMITED – ASX WPL, EXXONMOBIL CORPORATION

Rio urges long game on China iron ore need

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 19-Jun-15

China’s production of crude steel fell by 1.7 per cent in the March 2015 quarter, with a slowdown in the nation’s residential property market adversely affecting demand for steel. Andrew Harding, the CEO of Rio Tinto’s iron ore division, forecasts that demand for steel in China will remain subdued for the next few years. However, he is upbeat about the outlook for both iron ore and steel in the long-term, due to future strong demand in China and other parts of Asia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CHINA IRON AND STEEL INDUSTRY ASSOCIATION, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

Iron ore rally is short-lived and self-defeating: Goldman

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Original article by Rose Powell
The Australian Financial Review – Page: 19 : 10-Jun-15

Iron ore was trading at $US64.34 per tonne on 9 June 2015, compared with $US47 in April. However, Christian Lelong of Goldman Sachs remains bearish about the outlook for the steel input, forecasting that it will retreat to less than $US50 per tonne in the next three years. Chris Drew of Royal Bank of Canada also does not expect iron ore’s recent price gains to be sustained, citing factors such as a looming increase in supply in China.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, ROYAL BANK OF CANADA, BHP BILLITON LIMITED – ASX BHP, VALE SA

Mirvac cranks up its residential output as demand surges

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 33 : 21-May-15

Australian-listed property developer Mirvac Group is enjoying strong demand for homes in its master-planned residential housing estates. CEO Susan Lloyd-Hurwitz notes that sales have been particularly good in Melbourne and Sydney, with some $A250m worth of sales in Melbourne so far in 2015. She says Mirvac has been increasing the rate at which it releases housing lots in response to the strong demand.

CORPORATES
MIRVAC GROUP – ASX MGR