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The Outlook for 2015 and Property Market Implications

The Outlook for 2015 and Property Market Implications

Hi Everyone,

It’s this time of year when all the reviews for the year just passed and the year to come make their annual appearances.

I won’t dwell on 2014 as we now all know what has happened, but instead lets’ have a look at what 2015 may bring us as global political and economic factors can play an important role in the performance of asset prices in the future.

A recent CoreLogic-RP Data report has addressed many of these issues but details far too much historical data and focusses only on domestic issues. The recent fall in commodity prices, but particularly in the oil price and the prospect of significantly lower oil prices for the near to medium term may have a major impact on global growth over 2015.

This could provide a major boost for commodity-importers like India, China (to a lesser extent), the Philippines, Thailand and Indonesia. They are the countries going into next year that are going to continue to do well and are going to have a tailwind of a tax cuts and falling inflation. The losers are Russia, Brazil, Chile, Peru, Nigeria, and the Middle East.

If we look at this scenario developing, it should continue to bring further investment in Australian property as this trend has already developed over the last few years and it is mainly from the countries that are likely to experience this positive impact to their domestic economies.

From an Australian viewpoint, pivotal to the property market performance will be the direction of interest rates. There is growing debate that the next rates movement may be down rather than up. A further reduction in the cash rate will bring mortgage rates even lower than their current record low settings.

Theoretically, lower rates should provide a boost to housing market conditions, however, if this stimulus does transpire, it is likely to be balanced by pervasively low consumer confidence and softer labour markets. For the RBA, ongoing delay in the non-mining investment recovery will potentially cause some concerns. Whilst residential approvals declined early this quarter, the fall is not yet concerning from a central bank perspective.

The level of approvals remains elevated, and continues to suggest solid increases in housing supply. I think the balance of risks for monetary policy lies with the non-residential sector. The longer the economy’s growth rotation remains elusive the closer the RBA will be towards being pushed into an easing bias.

Additionally, the impact of the recent APRA announcement around investment lending may act to restrict the availability of finance to investors. The banking sector will be under scrutiny to keep growth in investor loans at slower than 10% pace of growth which is likely to have some downwards pressure on investor related housing demand.

I do not foresee this as a negative as it will help to keep a better overall balance in demand, if indeed we see anything actually come to pass.

Sydney and Melbourne have been the standouts for capital gains over the current growth phase, however the level of growth compared with last year is now lower as some heat leaves these markets. Just three of Australia’s capital cities are expected to experience higher capital growth in 2015 than they have this year.

CoreLogic RP Data head of research Tim Lawless forecast that only Brisbane, Adelaide and Hobart would improve, with Brisbane the standout.

“We are expecting the annual rate of capital gain to finish the year around 7.0 per cent, compared with 5.1 per cent over the 2013 calendar year,” Mr Lawless said.

“With the rate of capital gain holding relatively firm over the second half of 2014, fewer affordability pressures and better rental yields than Sydney or Melbourne, we are expecting growth in Brisbane dwelling values to outperform the capital city average.”

Overall I am expecting another solid year of housing market conditions and further capital gains, albeit at a more sustainable rate that what we have seen over 2014.

I would like to wish everyone a very Happy and Prosperous New Year!

As always, I hope you find this interesting reading and that it helps you make better informed decisions.

Best Regards,

Dr Andrew Unterweger MB BS, CFP®, Dip FP, Dip FNS, MFAA, AFA, SPAA, REA

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RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

The Outlook for 2015 and Property Market Implications

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Brisbane Prices Attracting Sydney and Melbourne Investors

Brisbane Prices Attracting Sydney and Melbourne Investors

Hi Everyone,

There have been some interesting reports coming out in the last few weeks, and the Reserve Bank of Australia once again kept rates on hold which was widely anticipated by the market in general.

This report from BIS Shrapnel should be of interest to all property investors :

“Brisbane and Sydney will be the clear leaders in house price growth over the next three years, a new report has revealed. Construction analyst BIS Shrapnel forecast that median house prices will increase in all capital cities by 2017, with Brisbane and Sydney recording double-digit percentage gains.

Brisbane’s median house prices are expected to climb by 17 per cent to $555,000 in the next three years, while Sydney is predicted to jump 10 per cent to $875,000.”

According to BIS Shrapnel senior manager Angie Zigomanis, house price growth will continue to be spurred on by low interest rates and an increasing population.

I have added an article about the surge in house prices in London since the local Australian press seems to have a love affair with stories about a potentially spurious Australian property boom. It’s interesting to note the following :

“Values in the capital surged 26 percent in the three months through June from the same period a year earlier, the biggest increase since 1987, Britain’s third-largest mortgage lender said in a statement. At an average 400,404 pounds ($686,700), prices in the city stand 30 percent above their 2007 peak.”

 It’s worth remembering that once you have established a suitable area to invest in based on non-emotional research, one of the biggest influences on the relative long term capital appreciation of your investment is the purchase price and this will largely be determined on where that area is placed in the current property cycle !

As you can see below, the forecast increases in value range between 17% for Brisbane and 3% for Canberra, Darwin and Perth

 

HOUSE PRICES TO CONTINUE RISING IN ALL CAPITAL CITIES

Brisbane and Sydney will be the clear leaders in house price growth over the next three years, a new report has revealed. More>>

BRISBANE PRICES ATTRACTING SYDNEY AND MELBOURNE INVESTORS

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Burgeoning population to boost housing demand

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With Australia’s population heading towards 24 million people, the latest ABS demographic statistics indicate an increased demand for housing according to the Housing Industry Association.

Click here to read more.

Bloomberg – London House Prices Surge the Most Since 1987, Nationwide Says http://bloom.bg/1rW9id4

Best Regards,

Dr Andrew Unterweger, MB.BS, CFP®, Dip FNS, Dip FP, SPAA, AFA, MFAA

Chairman

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

Brisbane Prices Attracting Sydney and Melbourne Investors

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Inner City predicted to Outperform

Inner City predicted to Outperform

Hi Everyone,

On Tuesday the Reserve Bank of Australia announced the outcome of its fifth board meeting of the year.

As widely predicted, the RBA announced it will be keeping the cash rate on hold at 2.5 per cent.

A survey conducted by loan comparison website finder.com.au prior to the board meeting found 16 Australian economists unanimously predicted no cash rate change. However, more than half of those surveyed predict the

cash rate will rise next year. Five respondents from Commonwealth Bank, CommSec, Urbis, HSBC and St George Bank expect to see a cash rate rise by the end of the year. Ten of the 16 participants suggested the public’s

reaction to federal Budget cuts will delay the change in cash rate, with nine stating the economy still has to grow in stability before any significant cash rate changes occur

The other point of interest is one that I often share with people when we’re discussing observable trends in the residential property market ;

Demand for inner-city housing is likely to surge in the future, while regional areas and outer suburbs will attract ever fewer buyers, according to a leading economist at the Reserve Bank of Australia (RBA). “The trade-off between space and place is getting steeper. Locating on the fringe is relatively less attractive than it used to be, and not only because the fringe is moving further out,” she said.

According to RBA data, the gap between prices in the inner ring and the outer suburbs is widening as desirability pushes up prices.

The RBA’s head of financial stability, Luci Ellis, recently spoke about Australia’s housing. These are the five points you must know about her property market speech.

Inner-city predicted to outperform regions
Demand for inner-city housing is likely to surge in the future, while regional areas and outer suburbs will attract ever fewer buyers, according to a leading economist at the Reserve Bank of Australia. More>>

Housing at most affordable level since 2002

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RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

Inner City predicted to Outperform

More Articles

How are Landlords Being Impacted by COVID-19?

With the economic shutdown across the country still putting the brakes on many industries, there has been a flow-on effect through many different industries. For investors, one of the problems they’ve been facing is whether or...

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Are you looking for an investment property? Buying a property to rent out is a significant investment that will put extra cash into your pocket every month. You might have narrowed down the suburb you’d like to invest in, but...

Learn From The Habits Of Successful Property Investors

The fact that property is an unpredictable market to invest in is nothing new. How then do property investors take calculated risks that yield success? Is it all just a guessing game? While there are formulae to calculate a possible outcome at any given moment,...

15 common myths that are killing the wealth potential of the average Australian property investor

There are many myths and false beliefs that you may be feeding yourself, that may be hindering your progress as a property investor. We are here to debunk some of these myths and help you make progress in seeing the property investment industry for the...

Everything You Need To Know About Australia’s Property Market Cycles

Most markets in the world consistently go through periods of growth contraction, and the property market is no different. While some might feel that this constant shift means that getting the most out of their property investments will be difficult, it is the...

Why You Should Invest In Brisbane’s Property Market

To many it might feel like the Sydney property market is difficult to penetrate in terms of property investments. Seeing as most suburbs within 50km of the city’s central business district have a median house price higher than $500 000, this sentiment is...
NAB’s View of Residential House Prices – Brisbane & Sydney to outperform

NAB’s View of Residential House Prices – Brisbane & Sydney to outperform

Hi Everyone,

I thought the interview with John Edwards from Residex is worth looking at to get a bit of an overview of the Australian market, and he thinks that Sydney and Melbourne may have peaked for this cycle, However, if we look at the NAB’s view, we can see that they predict quite robust rises for most regions.

I think it is simply common sense to focus on the two states with the most diversified economies, which are Queensland and NSW, when selecting an area for property investment, unless you have no choice due personal reasons which may restrict your selection capability. Too often we see individuals making potentially incorrect strategic decisions based solely on an emotional bias due to wanting to invest in the same location that they live in.

ANZ chief economist Warren Hogan told the Committee of Economic Development of Australia that the “housing market is at the early stages of a solid cyclical upswing” fed by low-interest rates and market shortfalls.

“We expect a 15-20 per cent lift in home prices between 2013 and 2015,” he said with long-awaited rises already underway in Sydney and Melbourne” ANZ one of the country’s biggest banks expects house prices to rise as much as 20 per cent before the end of next year, with lifts predicted to begin soon in parts of Queensland.

NAB modelling indicates that average capital city house prices will rise by around 6% through the year to December 2014 and by 5% in the year to December 2015, which is more bullish than the average survey forecast. House price growth should be supported by continued low-interest rates, improved affordability, population growth, long-standing supply issues and foreign buying activity.

However, unemployment pressures and the economy are likely to put a ceiling on how high house prices will go.

Brisbane (6.4%), Perth (6.3%) and Sydney (6%) lead the way forward in 2014, with much slower growth predicted in Adelaide (2.1%) due to high unemployment and an under-performing state economy. State variance will persist through 2015, with Brisbane (6%) and Sydney (5.1%) out-performing the national average. Modest price growth is also forecast for Perth (4.6%) and Melbourne (3.4%), but Adelaide (2.6%) continues to under-perform.

 

SydneyProperty_518x344_normal

Dwelling values continue upward trend

All capital cities posted a month-on-month increase in dwelling values in March, with Brisbane the market to watch, new research has revealed.

Dwelling values rose by 2.4% over March, equating to a 3.5% capital gain over Q1 according to the RP Data-Rismark Home Value Index.

Over the past three months, all capital cities apart from Perth posted a rise in dwelling values. Melbourne led the charge, up 5.4% over the quarter, followed by Hobart (up 4.7%) and Sydney (up 4.4%).

Sydney’s housing market has recorded record high dwelling values and is now 15.8% higher than its previous peak, says RP Data research director Tim Lawless. This compares to Melbourne’s growth of 4.7% from its previous peak, Perth’s growth of 2.9% and Canberra’s growth of 1.2%. read more...

Capital city property supply levels tighten 


james- Switzer brokerBy Craig James
Judging by the low supply of stock on capital city housing markets, home prices are likely to remain firm for some time.RP Data arguably has the best information on housing supply, claiming 100 per cent coverage of listings. RP Data says that it “tracks listing numbers nationally via real estate portals and print media as well as sourcing listings data directly from many of the major real estate groups. read more...

 

johnedwards-20140403_original.png?1396571321

By John Edwards
Is the housing bubble a myth or reality? For his views on house prices, John Edwards from Residex joins Broker TV.  Watch it now 

Brisbane inner north

Outstanding price growth for Brisbane’s inner north

Apartments in Brisbane’s inner-northern suburbs have been consistently achieving double-digit annual growth since around 2008, according to a local real estate group.

Director of Position Property Richard Lawrence said information from RP Data shows Albion, Clayfield, Ascot and Hamilton had annual price growth of 16 per cent over the past six years.

“Whether it is owners or investors, these figures represent not only market growth in the region but continued confidence in the inner-north suburbs,” Mr Lawrence said. read more …

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

NAB’s View of Residential House Prices – Brisbane & Sydney to outperform

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RBA upgrades Domestic Economic Growth

RBA upgrades Domestic Economic Growth

Hi Everyone,

Here are some articles of interest to anyone looking at investments in Australia.

As an aside I’ve included a snippet from Tim Farrelly who emphasizes that “ Buy high, sell low still seems to be the preferred strategy for many financial advisors “ and I think this is also true for many investors. That’s why we always continue to stress that it is important to invest in quality assets, preferably when they are under-priced to comparable investments. When looking at this in the context of property investments in Australia, the best avenue to use this basic principle is to compare what is happening in different locations.

Australia’s central bank signalled the end of a two-year easing cycle and foreshadowed stronger economic growth, sending the nation’s currency higher.

Governor Glenn Stevens kept the overnight cash-rate target at 2.5 percent, saying in a statement in Sydney “the most prudent course is likely to be a period of stability in interest rates.” He said the Australian dollar’s decline “will assist in achieving balanced growth,” dropping references in past statements that it was “uncomfortably high.”

The RBA is trying to stimulate housing construction to pick up some of the slack in the labour market from waning mining investment, and has previously said that higher property prices are needed to spur the building industry.

“Credit growth remains low overall but is picking up gradually for households,” the RBA said today. “Dwelling prices have increased further over the past several months.”

A private RP Data-Rismark home value index released this week showed house and apartment prices rose 9.8 percent in major cities in the year to Jan. 31. In and around Sydney, prices in some suburbs have surged as much as 27 percent in the past year.

Read the full story at http://www.bloomberg.com/news/2014-02-03/rba-holds-key-rate-at-record-low-2-5-as-currency-pressure-eases.html

 

RBA upgrades domestic economic growth

The Reserve Bank of Australia has upgraded domestic economic growth alongside its latest inflation forecasts, while Perpetual Investments has predicted positives for investors. More>>

 

Perspectives – latest

pcf_tn_Tim-Farrelly_70x70.jpgBlowing in the wind
In December, a report on asset allocation trends and intentions of financial planners crossed my desk. The voice in my head sang the Dylan classic “How many times…”
Tim Farrelly, farrelly’s | Opinion

 

Brisbane’s next growth suburbs identified

The inner-northern suburbs of Brisbane will offer the best prospects for capital growth and rental returns in the city, according to Position Property. Read More…

 

Sydney, Melbourne push values 1.2 pc higher in January

Property prices in the capital cities have continued 2013’s impressive gains, with a 1.2 per cent increase for the first month of 2014. More>>

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

RBA upgrades Domestic Economic Growth

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National property clock points to Brisbane boom

National property clock points to Brisbane boom

Hi Everyone,

Here are a few interesting articles that came up during the week.

Paul Bennion from Depro said “While Brisbane has been an underperforming property market for several years, there is every indication that property prices in the city will boom during 2014”

I take a more conservative view as I don’t believe we have seen a “boom” anywhere to date and the market in some cities has simply been catching up on sub trend growth from prior years. However, prices in Brisbane are still below pre-GFC levels, while Sydney is about 10% above now, so there is a greater likelihood of better capital growth in the Queensland over the next few years. I agree with the article by John McGrath and his view : “I think Sydney will have a strong Autumn as the Spring momentum carries over to 2014, but I’m not expecting the same intensity of demand for the entire year. My guess is 5-10% growth in prices this year but certain market segments will, of course, perform better than others. “

The other comforting news for most property investors is that the banks are now looking to increase market share by increasing competition in the fixed rate mortgage market. This means that you can now make meaningful investments and lock in what I think are extremely cheap interest rates for a long time frame, and this can provide the long term cash flow certainty that will create genuine “peace of mind” for most investors.

And, lastly an outlook on the Aussie $ for 2014 ……….. most forecasts seem to be in the 82 – 85 range against the USD by year end.

 

National property clock points to Brisbane boom

While Brisbane has been an underperforming property market for several years, there is every indication that property prices in the city will boom during 2014. Read more…

 

Major bank cuts fixed rates

As the battle for customers intensifies, a second major bank has announced a cut to its fixed rate on selected home loan products. More>>

 

Non-major slashes fixed rates

Following recent cuts to fixed rates by two major banks, a non-major has followed suit, slashing its fixed rates by up to 40 basis points. More>>

 

Looking ahead in 2014 


mcgrath_3.jpgJohn McGrath
After a phenomenal spring season in Sydney last year, I’m expecting another good year for Sydney.
Click here to read more.

 

Richard Grace speaking on Bloomberg about CBA’s FX forecast changes

http://www.bloomberg.com/video/japan-s-yen-losing-safe-haven-status-grace-says-6~BVQ~XlRfW6n7B2Mxiodg.html

Best Regards,

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

National property clock points to Brisbane boom

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Brisbane to overtake Sydney and Melbourne & What to expect in 2014

Brisbane to overtake Sydney and Melbourne & What to expect in 2014

Hi Everyone,

Here are some recent items which largely support what we have been saying in relation to what is likely to happen in the residential property market over the course of 2014.

We saw some very strong gains over 2013, particularly in Sydney and to a lesser extent Melbourne and if you watch the interview with Charles Tarbey, the Chairman of Century 21, you will see that they are anticipating some similar outcomes as the state capitals that have lagged behind play some catch up in price movements and we see a moderation of the rate of price appreciation in the others, particularly Sydney.

“The fundamentals remain attractive for select inner city markets and Brisbane still enjoys a lower median price than the other metropolitan markets in Australia,” Mr Smoli from Aviate Property research Group said in the report.

“Add to this comparative affordability the fact that average incomes in Queensland surpassed those of New South Wales and Victoria over the course of 2013, according to the ABS, as well as the weight of infrastructure commitments in Brisbane, including the second runway planned at Brisbane airport.”

The other article gives some statistics from a survey performed by Slater & Gordon’s Conveyancing Works, which I thing would actually vary to quite an extent depending on which State this is performed in, but isn’t actually addressed. However, I think it confirms the view we have held for some time that if you are looking to invest in the outer suburbs of the major capitals, or in regional areas that are suitable investment locations, it is better to look for a house and land proposition rather than an apartment or townhouse as the future tenant is statistically far more likely to desire this.

Lastly, it looks like the potential interest rate cut that could have been on the cards in the first half of the year may now be further away due to the latest inflation numbers that came out this week. Here is the view from AMP chief economist Shane Oliver who said employment is a lagging indicator, with the December figures reflecting the soft economic conditions and bleak outlook seen around the middle of last year.

“With more forward-looking economic indicators showing signs of improvement, for example housing approvals, retail sales and consumer and business confidence, jobs growth should start to improve by around mid-year,” he said.

Citing the recent fall in the value of the Australian dollar and increasing signs that the economy is now responding well to current policy, Mr Oliver predicted the cash rate would remain steady at least until September.

Brisbane to overtake Sydney and Melbourne

Tight supply and high demand are expected to push Brisbane’s property market ahead of Sydney and Melbourne’s markets over the next year. Read more…

 

Inner Sydney experiencing unsustainable prices

Parts of the Sydney property market should be approached with caution due to rapidly rising prices, according to a property research and investment firm. More>>

 

Buyers prefer large blocks over CBD proximity

Australian property buyers are willing to sacrifice living within reach of cities if it means owning a property with a backyard, according to new research. More >>>

 

charlestarbey-20140114_original.png?1389738057Charles Tarbey
For a look at what to expect property-wise in 2014, Century 21’s Charles Tarbey joins Broker TV.
Watch it now >>

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

Brisbane to overtake Sydney and Melbourne & What to expect in 2014

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RBA UNCONSTRAINED BY HOUSING BOOM

RBA UNCONSTRAINED BY HOUSING BOOM

Hi Everyone,

Happy New Year and may 2014 prove to be a prosperous one for you !

There have been many forecasts for the year ahead, and reviews about the year just passed so I thought it best just to share a few that I think we should all bear in mind so we can look at making some better informed decisions during 2014.

I think the most important piece of information is in relation to the RBA’s view of the current property market :

“Australia’s current monetary policy setting has not been constrained by the risk of an overheating property market, according to the central bank’s governor.”

“Governor Glenn Stevens told The Australian Financial Review that he is more concerned with improving dwelling construction than worried the market may overheat. Continued growth in home values is welcomed in order to stimulate further construction of new dwellings, according to Mr Stevens.”

It’s worth looking at the attached link to the global survey from Macquarie, and especially their view about the Australian economy for 2014 and monetary policy forecasts.

The RP Data report goes into some detail in relation to the major markets within Australia, but keep this comment in mind :

“Although home values increased by 9.8 per cent in 2013 the growth follows a -3.8 per cent annual fall in values in 2011 and

a further -0.4 per cent annual fall in 2012. Cumulatively, from peak to trough, capital city dwelling values were down 7.7%

prior to this current growth cycle,” Mr Kusher said.

RBA unconstrained by housing boom
Australia’s current monetary policy setting has not been constrained by the risk of an overheating property market, according to the central bank’s governor. More>>
Strong growth in non-capital cities
Satellite and regional city centres are contributing to strong growth in the housing market, according to the Real Estate Institute of Australia and Bendigo Bank quarterly market report. More>>

2 January 2014
RP Data – Rismark Home Value Index Release

Home values finish 2013 calendar year 9.8 per cent higher

Dwelling values across Australia’s capital cities increased by 1.4 per cent in December and by 2.8 per cent over the final quarter of 2013.

According to today’s release of the RP Data-Rismark Home Value Index results for December 2013, capital city home values moved 1.4 per cent higher over the last month of the year.

Over the fourth quarter of the year, capital city home values rose by 2.8 per cent following on from a 2.8 per cent increase over the first quarter, by 0.2 per cent increase over the second quarter and by 3.7 per cent increase over the third quarter. Read full press release with charts here.

Highlights over the three months to December 2013:

  • Best performing capital city: Sydney, +4.1 per cent
  • Weakest performing capital city: Hobart, -1.3 per cent
  • Highest rental yields: Darwin houses with gross rental yield of 6.0 per cent and Darwin units at 6.2 per cent
  • Lowest rental yields: Melbourne houses with gross rental yield of 3.4 per cent and Melbourne units at 4.2 per cent
  • Most expensive city: Sydney with a median dwelling price of $655,250
  • Most affordable city: Hobart with a median dwelling price of $330,000

Director’s Cut – Stocks to outpace bonds again in ‘14

  • We expect global equities to outperform bonds and commodities for a third straight year in 2014.
  • John Conomos’ global survey shows investors favour cyclical value and EPS momentum over low volatility and income strategies for 2014.
  • Jake Lynch says Middle Aged Urban Empty Nesters will be the key driver of China’s spending growth. Buy Great Wall and China Life Insurance.

> Find out more

I hope everybody gets some useful insights from this that may otherwise have been buried in, or left unread in the constant stream of information we have to seem to deal with on a daily basis

Best Wishes for 2014,

Doc

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

RBA UNCONSTRAINED BY HOUSING BOOM

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Good News on Housing Affordability  & Some Top Regional picks for 2014

Good News on Housing Affordability & Some Top Regional picks for 2014

Hi Everyone,

Here are some news articles that should be of interest to our readers.

One of the issues that all property investors consider is that of affordability, although we all know some markets like Hong Kong seem to defy the usual trends. The good news for the Australian market is that “Housing affordability improved across all states and territories in the September quarter according to the latest Adelaide Bank/REIA Housing Affordability Report.”

I also wanted to point out that some of the Regional Areas that have diverse economic drivers and sources of employment growth and infrastructure expansion, should not be overlooked by investors simply because they may not be familiar with them. We have had a positive outlook for the Newcastle / Hunter region north of Sydney for some time now and some of the Queensland regionals are now starting to show promise. The article below loos at Mackay and Townsville, but I would also like to add Toowoomba to that list as I lived there for three years so know the region quite well.

Toowoomba is Australia’s second largest inland regional cities and is located in south-east Queensland, only an hour and a half’s drive west from the state capital of Brisbane. Toowoomba is the commercial and economic hub of the Darling Downs, and widely accepted as the service centre for the Surat Basin. The Surat Basin, particularly known for its thriving agriculture, manufacturing and energy industries, follows a corridor from Toowoomba to Roma that includes the regional localities of Dalby, Chinchilla, Wandoan and Miles. With a residential population of 172,510 people, Toowoomba and the wider Surat Basin serves a population in excess of 250,000 people.

Top regional investment picks for 2014

1.61.jpgTwo regional areas in Queensland have been highlighted as strong investment prospects for 2014 for offering buyers strong fundamentals without the additional risks that come with mining towns.

SPI_NewsLetter_12.gif

 

QLD property market in growth phase

Queensland’s residential property market is improving, with new data showing sales are growing in many areas. More >>>

 

Regional recovery faster than normal due to Sydney heat 


mcgrath_2.jpgJohn McGrath
Real estate markets are cyclical, with the same patterns emerging every time we enter a new growth phase.
Click here to read more.

 

 

Good news on housing affordability

Percentage_100x100_original.jpg?1385683061Broker News
Interest rate reductions have helped drive an improvement in housing affordability, which jumped by 3.2% in the September quarter to reach 75.1 according to the latest HIA-Commonwealth Bank Housing Affordability Index.
Click here to read more.

 

Investors to expand portfolios; take on more risk in 2014

HousingEstate_100x100_original.jpg?1385940203Broker News
Up to 72% of investors in the Pacific region intend to increase their investment in property in 2014, up from 56% investors the previous year, according to a new survey.
Click here to read more.

 


Best Regards,

Doc

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

Read more…

 

http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

Good News on Housing Affordability & Some Top Regional picks for 2014

More Articles

How are Landlords Being Impacted by COVID-19?

With the economic shutdown across the country still putting the brakes on many industries, there has been a flow-on effect through many different industries. For investors, one of the problems they’ve been facing is whether or...

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Are you looking for an investment property? Buying a property to rent out is a significant investment that will put extra cash into your pocket every month. You might have narrowed down the suburb you’d like to invest in, but...

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The fact that property is an unpredictable market to invest in is nothing new. How then do property investors take calculated risks that yield success? Is it all just a guessing game? While there are formulae to calculate a possible outcome at any given moment,...

15 common myths that are killing the wealth potential of the average Australian property investor

There are many myths and false beliefs that you may be feeding yourself, that may be hindering your progress as a property investor. We are here to debunk some of these myths and help you make progress in seeing the property investment industry for the...

Everything You Need To Know About Australia’s Property Market Cycles

Most markets in the world consistently go through periods of growth contraction, and the property market is no different. While some might feel that this constant shift means that getting the most out of their property investments will be difficult, it is the...

Why You Should Invest In Brisbane’s Property Market

To many it might feel like the Sydney property market is difficult to penetrate in terms of property investments. Seeing as most suburbs within 50km of the city’s central business district have a median house price higher than $500 000, this sentiment is...
Brisbane to overtake Sydney and Melbourne & What to expect in 2014

Population Boom Leading to Housing Crisis / 2014 Outlook / Brisbane

Hi Everyone,

I wanted to share a few stories that contain some pretty pertinent information for everyone who is looking

At what to expect in the property market in 2014 and beyond.

“AMP chief economist Shane Oliver said policy makers should take note of the predictions and begin to address

the shortage of housing now.”

“A rough estimate is that over the last decade we have already underbuilt by around 10,000 homes;

the new ABS data simply shows the problem is only going to get worse,” he said.

We have been looking at the changes that the last decade has been bringing to Australia due to the way

Asian demographics and consumer behaviour has become more closely aligned with the Australian economy.

Another article that echo’s the increasingly positive sentiment that is building for the Brisbane property

Market ;

“Lachlan Walker, director of Place Advisory, said all the signs are indicating 2014 will be a bumper year for

the Brisbane property market.”

 

Population boom leading to housing crisis
New population predictions released by the Australian Bureau of Statistics indicate a dire need to increase new dwelling construction, according to a leading economist. More>>


Understanding the Asian Century – key to investment success in 2014
1.65.jpg
Making money through property in Australia in 2014 will largely rely on understanding Asia’s changing demographics and economy, according to a leading buyer’s advocate.
SPI_NewsLetter_12.gif

 


New apartments in Brisbane set to take off
2.65.jpg
Sales volumes for new apartments in Brisbane have spiked, causing one property analyst to predict the market is set for a ‘monster’ year in 2014.
SPI_NewsLetter_12.gif

 


Best Regards,

Doc

RATES FORECAST TO FALL TO 2PC

By Smart Property Investor Staff Reporter

Friday, 06 February 2015

Two prominent economists have praised the Reserve Bank of Australia’s decision to reduce the cash rate and have predicted at least one more cut to come.

Domain Group senior economist Andrew Wilson said the Reserve Bank had made the right decision to reduce the cash rate from 2.5 per cent to 2.25 per cent.

Dr Wilson also said that another cut is likely, given that the economy received minimal stimulus from the succession of rate cuts between October 2011 and August 2013.

 

“We haven’t had much action from cutting from 4.75 per cent to 2.5 per cent, so I’m not sure what a 0.25 per cent improvement is going to do,” he told Smart Property Investment's sister publication Real Estate Business.

“Certainly the Reserve Bank had to act – it’s really the only tool in the box that we’ve got left.”

read more...

Pricing gaps across product types and capital cities are widening

by Cameron Kusher

30 January 2015

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

The cost of Sydney housing relative to other capital cities is widening and the cost of buying a house as opposed to a unit is increasing as a record number of units commence construction.

According to median selling prices over the three months to December 2014 published in the CoreLogic RP Data Home Value Index report, the gap between capital city house and unit prices has never been greater. As at December 2014, the capital city median house price was almost 20% higher than the capital city median house price. In dollar value terms, median house prices are $100,000 greater than unit prices. read more...

 

John McGrath ignites Sydney's "hot forever" inner ring debate

by Jonathan Chancellor

1 FEBRUARY 2015

John McGrath has always been passionate about the property prospects of Sydney’s inner ring suburbs. But last week he went a little further, saying suburbs close to the city are becoming so desirable that they will be “hot forever”

But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".

The high profile agent stopped short of declaring inner city property prices were immune from price falls.

But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers.

"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.

read more..

 

 

 

 

Sydney property bubble to pop when rates rise, says HSBC

Wednesday, 11 Feb 2015   |

James Mitchell

0

·

·        A fresh round of cheap credit is further inflating Sydney’s investor-driven property prices.

In a research note released yesterday, HSBC economists Paul Bloxham and Daniel Smith predict strong national housing price growth to continue at seven to eight per cent, driven by record-low mortgage rates.

“We see Sydney prices rising by 9 to 10 per cent in 2015 and expect that, when rates do eventually rise, there is now a high risk that Sydney will see price falls,” the economists said.

“Although we do not see a national housing bubble, we believe that growth in Sydney housing prices is currently running at an unsustainable pace and that any further growth is likely to be met by housing price declines in future years, when interest rates do begin to rise,” they said.

A signal of the growing risk of overinflation in the Sydney market is the high level of investor demand, according to HSBC.

Read more…

https://www.mortgagebusiness.com.au/breaking-news/8152-sydney-property-bubble-to-pop-when-rates-rise-says-hsbc

 

 

 

 

 

JESSIE RICHARDSON | 10 FEBRUARY 2015

Melbourne growth to stand out in 2016: HSBC's Paul Bloxham

Melbourne will see the highest price growth of any capital city next year, HSBC has forecast.

In the latest HSBC Australia Downunder Digest report, HSBC Australia chief economist Paul Bloxham forecasts 4% to 8% price growth in Melbourne for 2016, after 7% to 8% growth in 2015.

Bloxham expects that in 2015, Melbourne and Sydney will "continue to outpace the rest of the nation", noting that from its mid-2012 trough, Melbourne's housing prices have increased by 20%. Read more

http://www.propertyobserver.com.au/finding/residential-investment/40049-melbourne-growth-to-stand-out-in-2016-paul-bloxham.html

 

Commonwealth Bank posts 8pc half-year profit rise to $4.5b

By business reporter Michael Janda

Updated 11 Feb 2015, 5:49am

 

PHOTO: The Commonwealth Bank has posted its half-year results. (ABC News: Nic MacBean, file photo)

The Commonwealth Bank has reported an 8 per cent rise in half-year profit to $4.54 billion.

The bank's preferred cash measure of net profit, which adjusts for some accounting items, also rose 8 per cent to $4.62 billion.

CBA said its improved profit came on the back of a 5 per cent increase in revenue, despite subdued conditions in the lending market.

It also said it had lowered its cost to income ratio by 70 basis points to 42.2 per cent, as productivity initiatives continued to contain business expenses.

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http://www.abc.net.au/news/2015-02-11/cba-half-year-profit-result/6084926

 

 

 

 

 

Population Boom Leading to Housing Crisis / 2014 Outlook / Brisbane

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