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Australian Economy

Melbourne feels the heat of interest rate rises

Figures from the ABS on Monday showed Melbourne was the star performer in Australia’s Real Estate markets. For the three months to September 2010, prices rocketed 2.7 percent in Melbourne, way in front of the next best result of just 0.4 percent (Perth) and with the majority of capital cities

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Australian Economy

ABA: Extra rate hike due to housing bubble

The Australian Bankers’ Association has reviled today that the extra hike in mortgage rates is due to international investors getting extremely nervous about Australia’s housing bubble. Steven Munchenberg from the ABA said “Over the last few weeks, we’ve had a lot of international investors asking very detailed and probing questions

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ABS House Price Indices

Australia’s housing asset boom slams on the brakes

According to official housing data released today by the Australian Bureau of Statistics, Australia’s Housing Market has slammed on the brakes with five of eight states going into reverse gear. The weighted average of eight capital cities barely kept its head above water, rising only 0.1% for the September 2010

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Australian Economy

Green light given to allow housing bubble to collapse

Late last month we reported that global rating agency Finch Ratings would stress test Australian banks after an avalanche of inquiries questioning the sustainability of Australia’s housing bubble. Fitch today has reported banks could manage a 40 percent plunge in house prices and a home loan default rate of 8

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Australian Economy

Investors flee Adelaide housing bubble.

The Adelaide Advertiser has today printed a two page spread on pages 10 and 11 tittled “Has the housing bubble burst?”. It reports “official” figures supplied exclusively to the paper showing house prices are starting to fall in Adelaide, down $10,000 or 2.4 percent to $400,000 in the September quarter.

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Australian Economy

RBA warns on low rental yields

In an address to the CPA Australia conference, Luci Ellis, Head of Financial Stability for the Reserve Bank of Australia has warned poor investment yields are a sign there is an asset bubble. “If rental yields are very low, investors are buying properties without really thinking about the rental yield.”

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Australian Economy

Bubble starts to leak

House prices are starting to fall in Australia, with the median national house price falling 0.2 percent in August according to the RP Data Riskmark Index. In Melbourne, house prices fell 1.5 percent reducing the median house price to $470,000. Brisbane house prices fell 2.3 percent to $434,000 for the

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Australian Economy

Red book : Household debt significant economic threat to Australia

A secret treasury economic brief to the government warns Australia’s high level of household debt and Australian bank’s reliance on overseas funding are significant risks to the Australian economy. The brief, known as the “Red Book” was made public on Friday after many freedom of information requests. “Highly indebted households,

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Australian Economy

Fools for the holy grail

Latest data from the Melbourne Institute show the number of households that are debt free has fallen to 9 year lows with only 36.2 percent of households holding no debt in the September quarter, a record for the survey which began in 2001. Recent ABS data shows Household debt has

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Australian Economy

Interest rates set to skyrocket.

Borrowers will need to brace themselves for a raft of rate rises next year as the economy strengthens according to a former senior Reserve Bank economist. Paul Bloxham, the newly appointed HSBC chief economist for Australia and New Zealand has predicted the RBA will bump up the official cash rate

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Australian Economy

The Great Impression

You have heard it time and time again. A small miracle has occurred down under, we have dodged the biggest financial crisis since the great depression and are on the road to recovery. But are we? Are we really in the Great Impression – The impression that everything is a

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Australian Economy

New home sales falls to 17 month low

New home sales have continued a downwards trajectory, with the Housing Industry Associating reporting its home sale index falling 5.1 percent in June. This follows a 6.4 percent drop in May. Melbourne recorded the largest falls, sliding 10 percent for the month. Western Australia and Queensland trailed, falling 5.2 and