Australian Economy
Mainstream media knocks it on the head.
Retail therapy impossible in this housing market – The Sydney Morning Herald, 19th July 2011.
Australian Economy
Problems at ‘home’ could see interest rates plunge
Westpac Chief Economist Bill Evans came out on Friday predicting that interest rates could fall 100 basis points over the next 12 months while unemployment could jump as high as 5.75 percent (up from 4.9 percent today) as a range of leading employment indicators were turning south. In an article …
Australian Economy
This is the beginning of a substantial housing correction : Jonathan Reeves
A Housing Industry of Australia (HIA) / RP Data residential land report has today shown land sales have fallen to their lowest level since accurate figures were first recorded. In just the past year, Land sales around the country has fallen 43 percent to the end of the March quarter. …
Australian Economy
World’s consumers plan to cut back on discretionary spend
Last month we wrote about signs that China’s construction bubble could be on the verge of bursting. There were concerns of large and mounting debts held by LGFV (Local Government Finance Vehicles) for empty office towers, residential real estate and other non performing infrastructure investments. Two days after we wrote …
Australian Economy
More surprises for economists (Housing Approvals & Retail Sales)
There were more surprises for economists today with Retail sales falling 0.6 percent seasonally adjusted for May 2011. Economists had expected a rise of 0.3 percent. The ABS also released Housing approvals for the month of May showing falls of 7.9 percent in contrast to economist predictions of a minor …
Australian Economy
BIS Shrapnel predicts rates to hit 9.4 percent & housing won’t crash
A report from BIS Shrapnel today predicts mortgage rates will climb sharply to 9.4 percent by 2013 as the RBA combats rampant inflation, but there is nothing to worry about as property won’t crash! It makes the prediction that prices will stay steady “with some cities even showing moderate price …
Australian Economy
Rental listings on the rise
It wasn’t that long ago the property lobby was screaming of a shortage of houses. In the last six months we have seen a surge of houses listed for sale, and it now appears these are overflowing onto the rental market forcing landlords to drop rents. Owners, unable to sell …
China
Is China’s Construction Bubble ready to Burst?
The second bailout of Greece has been in the lime light for the past couple of weeks. While Fitch rating’s Andrew Colquhoun said today that Australian and Korean Banks are the most exposed in Asia to the European debt crisis thanks to our dependence on offshore borrowing, is there another …
Australian Economy
Retailers shed jobs
Property experts make the argument that house prices can’t fall in Australia as we have very low unemployment. But it begs the question if a fall in house prices leads or lags a fall in employment? The Unconventional Economist set out to answer this question last month and found that …
Australian Economy
Debt Bubble Cripples Retail Spending
In a report released by Access Economics today, it expects retail sales to grow by only 1.3 percent this financial year, sounding the worst period for retail spending in two decades. But, on a positive note, it expects a rebound next year. David Rumbensm, a partner with Deloitte Access Economics …
Australian Economy
“Household arrears are a concerning trend” – ANZ Chief Executive
Philip Chronican, ANZ’s Chief Executive Officer, Australia has today said “Household arrears are a concerning trend. It is a problem that is going to stay for a while,” The comments come a week after Fitch Ratings reported mortgage arrears had hit record highs. Mortgage arrears greater than 30 days increased …
Australian Economy
Clouds show no sign of clearing
Storm clouds overshadowing the Australian Residential Property Market show no signs of abating. The rain has settled in and appears to be here for the medium term. Today’s monthly release from RPdata shows house prices across the country fell a seasonally adjusted 0.3 percent in April. Perth lead the falls …
Australian Economy
Kochie reveals falling property market on Sunrise and questions if Australian’s are given the truth?
Financial commentator and co-host of Channel 7’s Sunrise, David Koch, is considered one of the more influential people in the finance industry, appealing to much of the Mum & Dad segment. Today, Kochie featured a story on Australia’s falling property market – yes, that’s right, falling. In an interview with …
Australian Economy
Home loans at 10 year lows
Home loan approvals have fallen to 10 year lows in Australia and is set to put further downwards pressure on house prices over the coming year. Approvals for owner occupied housing loans fell 1.5 percent, seasonally adjusted, for the March 2011 quarter. As most buyers require loans to purchase property, …
Australian Economy
Are the Negative Gearer’s really heading for the exits?
Late last month we reported on news of the Gillard Government considering the scaling back of Negative Gearing in Australia. (See Negative Gearing Rort added to Endangered Species List) The Australian has today reported on a couple trying to sell an investment property after the uncertainly brought about from these …
Australian Economy
Federal budget a win for aspiring first home buyers
The 2011 Federal Budget released on Tuesday night should come as a welcome relief for aspiring first home buyers faced with chronic affordability issues. As expected, the Government has this time bucked previous trends and decided not to meddle with the property market. Hopefully, this time, the government will leave …
Australian Economy
Retail sales fall in March
The ABS has today released data showing Australian Retail Sales have fallen a seasonally adjusted 0.5 percent in the month of March. The fall has come as a surprise to many economists who had expected sales to actually increase 0.5 percent. In early April, we reported on the Net Savings …
ABS House Price Indices
Down, Down, Prices are Down . .
Figures released today from the ABS show house prices in Australia has fallen a larger than expected 1.68 percent in the March quarter, recording the biggest fall since the global financial crisis. Economists had only expected a 0.5 percent fall. Both Melbourne and Brisbane lead the change in fortune recording …
Australian Economy
Negative gearing rort added to endangered species list
With the housing market once again showing signs of cooling, there has been some debate in recent weeks surrounding the question of if the government will introduce a new first home owner’s grant to prop up the market. So you can imagine the surprise we received today, when news broke …
Australian Economy
Bleak future for home builders as Australian land sales plunge 40.4 percent.
Figures from the HIA-rpdata.com Residential Land Report show the number of land sales in Australia has fallen sharply, reaching levels not seen in a decade. Sales of land for the 12 months to December 2010 has fallen 40.4 percent and is believed to be due to severe un-affordability reducing demand, …