Money Industry professionals have turned cold on Australia's largest property markets

02:28  13 july  2018
02:28  13 july  2018 Source:   businessinsider.com.au

Home prices in Sydney and Melbourne are still falling

  Home prices in Sydney and Melbourne are still falling <p>Prices in Sydney, Melbourne <g class="gr_ gr_3 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep" data-gr-id="3" id="3">and</g> Perth all eased by 0.1%, while those in Brisbane and Adelaide were flat.</p>Australian home prices continued to fall in early July, dragged down yet again by declines in Sydney and Melbourne.

Insurance solutions in Australia are provided by competent firms and legal advisors who are experts in their fields. The information and technology industry of Australia contributes about 38% of the global IT market solutions and is the third largest in the Asia-Pacific region.

According to the ABC, the report found Chinese capital flows into Australia had fallen in recent months, and this was having a pronounced effect on the domestic property market . “Over the past few months, the Sydney housing market has not only cooled down, but has arguably turned cold

a group of people standing outside of a building: Cold winter day in Melbourne, Australia.  © Provided by Getty Cold winter day in Melbourne, Australia.

    Sentiment among Australian property professionals weakened sharply in latest ANZ-Property Council of Australia (PCA) survey, pulling back from record highs in the prior quarter.

    The decline was also broad-based with sentiment only improving in Queensland and South Australia from three months earlier.

    Unsurprisingly, it was driven by souring sentiment towards the outlook for the housing market.

    "The fall in sentiment is entirely due to the residential segment," said David Plank, Head of Australian Economics at ANZ Bank.

    "In a sharp reversal from the stabilisation of previous quarters, the outlook for capital values in residential property has deteriorated markedly.

    Crime has no impact on property prices in Melbourne: report

      Crime has no impact on property prices in Melbourne: report Infrastructure Victoria study of 300,00 properties found violent crime rates in Melbourne had no statistically significant impact on house prices. The findings are in contrast with a decade of academic literature on property markets in Sydney, America and England which have consistently found a significant substantial negative effect on house prices.The researchers combined figures from property datbase CoreLogic with postcode-level data from the Victorian Crime Statistics Agency.

    The economy of Australia is one of the largest mixed- market economies in the world, with a GDP of A.69 trillion as of 2017. Australia is the second-wealthiest nation in terms of wealth per adult

    Turn on Animations. Australia . Property research and market reports. 08 Jul 2018. What does rising US interest rate mean for the Australian housing market ? by Yad Haidari.

    "Staffing levels, construction activity and the forward work schedule are all expected to ease in the residential space."

    In recent months, home prices nationally have been falling in average weighted terms, led by declines in Melbourne and Sydney, mirroring weak outcomes in auction clearance rates, new home sales and housing credit growth.

    The decline in industry sentiment also reflects the views conveyed in the latest Westpac-MI Australian consumer survey.

    Plank said expectations for home prices weakened substantially in the latest survey, a result in stark contrast to the views conveyed just one year ago.

    "The outlook for capital values has materially worsened," he said.

    "New South Wales and Victoria are leading this shift in sentiment, with a net 37% and 24% of respondents respectively expecting prices to fall over the next 12 months.

    Frozen hose hampers battle against NSW house fire

      Frozen hose hampers battle against NSW house fire <p>Sub-zero temperatures in Uralla have caused a fire hose to freeze, hampering the battle against a blaze at a cottage.</p>Crews were called to the property on Queen Street in the NSW Northern Tablelands town about 1:00am on Sunday.

    For the company that markets itself properly on an international level, this can lead to a huge boost in revenue. #Business, Industry insights. Turn on employer branding and benefit from more relevant job applicants and shorter time-to-hire.

    2016 Top Markets Report Cold Chain Country Case Study. Industry ’ s Take: Australia is a market dominated by several large players and is reaping the benefits of a trade agreement with China.

    "This reflects a sharp turnaround from the net 20% who expected prices to rise this time last year."

    Like recent data and many analyst forecasts, all the weakness is concentrated in New South Wales and Victoria, masking stronger sentiment levels in Australia's smaller states and territories.

    a screenshot of a cell phone© Provided by Supplied

    "It is understandable that respondents expect New South Wales and Victoria to experience the sharpest declines, given that those housing markets have had the strongest growth in recent years," Plank said.

    "Households there are the most highly leveraged and therefore the most susceptible to tightening lending standards."

    Despite the pessimism in those markets, Plank said it was encouraging to see a stronger outlook in Queensland and Western Australia.

    "Queensland is experiencing accelerating population growth, which should support the housing sector, while Western Australia is close to the end of the downturn in mining investment," he said.

    Australia Pension Bonanza Sends $41 Billion Fund on a Hiring Spree

      Australia Pension Bonanza Sends $41 Billion Fund on a Hiring Spree Sunsuper Pty Ltd. plans to almost double its staff over the next three years to tap into Australian pension assets, which have been growing at the fastest pace among the world’s biggest nations. The Queensland-based fund, which oversees A$55 billion ($41 billion), is looking to boost investment decision-making ranks to about 50 by 2021 from 29 currently, according to Ian Patrick, its chief investment officer. It is also seeking to beef support staff to 40 from 20.“We will add but very selectively and deliberately, almost across the portfolio,” Patrick said in an interview in Sydney on Friday.

    Australia as a whole is heavily reliant on primary industry and the main benefits of a FTA between the two countries were seen to be increased access to the large , but heavily subsidised and protected, American market by Australian producers.

    Investments in Coal, metal industry and Livestock have supported the industrial property market while the vibrant commercial sector forms the base for office property investment (Hendershott, 1994). Australia has one of the most stable economies in the world.

    However, while pockets of strength will remain, from a broader perspective, respondents were pessimistic about the outlook for residential construction in the latest survey.

    "The outlook for residential construction activity has also eased, reaching its lowest level in six years, albeit still in positive territory," Plank said.

    "If credit availability worsens -- as expected by survey respondents -- it is likely that building approvals will follow suit."

    As seen in this next chart, expectations about the ability to obtain finance has a more than reasonable relationship to annual changes in Australian building approvals.

    a close up of a map© Provided by Supplied

    And with overall expectations about the outlook for residential construction deteriorating in the latest survey, it also suggests that Australia's residential building boom -- currently the largest on record based on the number of homes already under construction -- could pull back sharply in the months ahead.

    a close up of a map© Provided by Supplied

    "We believe that building approvals are already moving past their peak," Plank says. "And we expect to see housing starts fall around 10% over the coming year."

    He says a sharp tightening in credit availability also raises the risk the decline may be steeper than ANZ currently expects, especially in the second half of 2019 and into 2020.

    "The tightening in credit availability and the associated weakening of the residential housing market do increase the economy’s vulnerability to additional shocks," Plank says.

    "This suggests that policy makers should be especially careful about adding to the downside risks.”

    According to the PCA, the most recent survey canvassed the views of over 900 property experts, including owners, developers, agents, managers, consultants and government officials.

    Australian yuzu growers make 50 times citrus prices with 'ugly' fruit from Asia .
    It's the odd lemon-like fruit which is prickly to pick and has a flavour difficult to describe, but yuzu is highly prized, particularly in Japanese cuisine. While most citrus fetches prices less than $500 a tonne, yuzu growers are getting as much as $25,000 a tonne, or $25 per kilogram, at the farm gate.Shaun Arnold wears heavy-duty welding gloves to pluck the small yellow fruit off his thorny yuzu trees at Waikerie in the Riverland."We're the only silly buggers that'll pick 'em," South Australian grower Shaun Arnold said.The Arnold family is one of only three known commercial yuzu growers in Australia.

    —   Share news in the SOC. Networks

    Topical videos:

    This is interesting!