Australian Economy
Month: November 2008
Australian Economy
Property price fall worst in 25 years
THE once booming Perth property market has recorded its third consecutive quarterly fall in the median house price – a phenomenon not seen in 25 years – as talk of a recession eats into consumer confidence. Real Estate Institute of Western Australia president Rob Druitt said the Perth market was …
Australian Economy
ASX losses fall through 50%
Today seemed like just another “normal” day on the market. The All Ords fell 150.6 points to close the day down at 3332.6. However the significance of today’s close is that the market is now down 51.4% from its peak of 6853.6 points recorded just a little more than a …
Australian Economy
End of easy credit over as banks tighten lending standards
The New’s reports today that the CBA has banned no-deposit loan, while the ANZ has moved to tighten eligibility requirements. JP Morgan banking analyst Brian Johnson says “The era of getting very easy credit to buy a house is over”. John Symonds of Aussie Home Loans said the change signals …
Australian Economy
House prices “shouldn’t” crash: RBA chief
Australia’s house prices will soften but should not crash because of the world economic crisis, Reserve Bank governor Glenn Stevens says. Answering a question from the floor at a business dinner in Melbourne, Mr Stevens said the ratio between house prices and household income was historically “very high”, partly because …
Australian Economy
It’s never a better time to buy
With falling Interest rates and the increased first home buyers grants, many real estate experts are saying it is never a better time to buy. Actually, when you come to think of it – when isn’t it the right time to buy? My stock broker will give buy and SELL …
Australian Economy
Sydney: Massive job losses loom, taskforce says
SYDNEY could lose 87,000 jobs if a massive drop in building approvals recorded in the September quarter was sustained over a full year, developer lobby group Urban Taskforce said. Chief executive Aaron Gadiel said an analysis of the figures showed the impact on jobs would be “startling”. » Massive job …
Australian Economy
Brisbane: More projects dumped with more jobs in limbo
The Gold Coast Bulletin reports the sale of high rise units have slowed significantly with many owners pulling out of contracts prior to settlement. Since May there has only been one high rise building released. Like other states, many new developments are being put on hold putting many jobs at …
Australian Economy
Melbourne: Tens of thousand Construction jobs in limbo
The Australian reported today : THOUSANDS of Melbourne construction jobs are on the line, with major building projects in and around the CBD under severe threat. Unions are bracing themselves for steep job losses, estimated by some to be as high as 10,000, as major commercial project and high-rise apartment …
Australian Economy
China facing rapid economic slowdown
China has received more evidence that its economic growth is slowing drastically. The growth in China’s industrial output slowed to 8.2 per cent in October, compared to 11.4 per cent a month earlier. » China facing rapid economic slowdown – Yahoo 7 Finance, 13th November 2008.
Australian Economy
NSW Government to join Federal in encouraging young first home owners to take on large debts.
On the 14th of last month we reported that the Australian Government announced increased grants to encourage people to take on more excessive debt. The Federal Government increased the FHOG to $14,000 for first home owner buying established dwellings and to $21,000 for first home owners that were building. The …
Australian Economy
SA Treasurer Foley ‘terrified’ by financial crisis
TREASURER Kevin Foley is cutting short his overseas fact-finding mission on the global financial crisis as he warns South Australians to prepare for “heartache”. Speaking to The Advertiser after arriving in London from the U.S. yesterday, Mr Foley says he is “terrified” after five days of meetings with banks, fund …
Australian Economy
Allco’s collapse may bring down house of cards
THE collapse of Allco Finance Group into receivership is in danger of creating a domino effect among its listed real estate and investment offshoots, after a flurry of statements yesterday warned of likely defaults on their debt repayment deals. Allco’s demise has already taken with it the group’s subsidiary which …
Australian Economy
ABC Learning in Administration
ABC Learning : Safe as houses. After delaying the release of its annual results for the third time, ABC learning centers was yesterday placed in the hands of voluntary administrator, Ferrier Hodgson. The company has 1,200 child care centers in Australia and New Zealand, and another 1000 in the United …
Australian Housing
Mirvac halves its earnings estimate
Empty homes built by Mirvac litter Newbury Estate Mirvac, NSW’s largest home builder has dramatically revised its earnings estimates down almost 50% as confidence continues to slide in the new home market. Managing director Nicholas Collishaw told investors the revision reflected “a conservative assessment of forecast residential settlements and sales …
Australian Housing
Pressure on banks to become landlords
The Federal Government is calling on the major banks to have a good look at their hardship provisions as more Australians default on their mortgages. One option under serious consideration in Australia, the United Kingdom and the United States is for banks to become landlords. With the global financial crisis …
Australian Economy
Chinese Factories Closing by the Tens of Thousands
First, Tao Shoulong burned his company’s financial books. He then sold his private golf club memberships and disposed of his Mercedes S-600 sedan. And then he was gone. And just like that, China’s biggest textile dye operation — with four factories, a campus the size of 31 football fields, 4,000 …
Australian Economy
RBA slashes cash rate by 75 basis points
In a sign that the state of the economy is far worse than initially expected, the RBA has once again surprised the market with a 75 basis point cut to official interest rates. Market consensus today was for a cut of only 50 basis points. This follows the RBA’s surprise …
ABS House Price Indices
Australian house prices fall 1.8% : ABS
The Official House Price Index released by the Australian Bureau of Statistics today show Australian house prices have fallen 1.8% for the September quarter 2008. The biggest fall was experienced in the Brisbane, with prices heading south by 3.3%. Canberra was just behind at -2.5%, followed by Melbourne -1.9, Sydney …