Rich Join the Property Hunt
Australia's wealthiest individuals and families are virtually supporting the commercial market themselves, having bought properties valued at about $1 billion in the past few months. Individual and family outfits are responsible for most of the large property transactions as listed and unlisted property trusts and fund managers scramble to sell assets to decrease debt.
Our Bulging Banks and All That Money
Whatever happened to Armageddon? Ever since the global financial crisis erupted, the big banks have been soaking up capital at every available opportunity in anticipation of the avalanche of bad debts that would pour through the system. Now they find themselves over-capitalised in an improving environment. ANZ’s trading update has confirmed what Westpac’s first quarter results signalled.
Housing recovery firms in July
Based on Australia’s largest property database, which includes around 145,000 sales for the first seven months of 2009 (and over 129m data records in total), Australia’s housing recovery has continued in the month of July with solid across-the-board capital gains. According to the RP Data-Rismark National Capital City Hedonic Index, Australian home values rose by 0.9 per cent in July 2009.
Record Lift in Confidence:
Consumer sentiment; Labour Price Index Consumer confidence rose for the third straight month in August. The lift in confidence over the past three months has been the strongest since the survey began in 1973. Wages rose by 0.8 per cent in the June quarter, matching similar growth in the March quarter. Wages are up 3.8 per cent on a year ago – the slowest growth in almost three years.
Sydney Set for Property Boom
The average price of a Sydney home could rise by $100,000 in the next two years, according to an investment group. A shortage of homes and a growth in population will cause the property boom, The Investors Club says.
Impressive Increase in Home Values
A 4.5 per cent increase in Australian home values in the first half of 2009 heralds good news for the property market with improvements being recorded across all market price segments according to the combined RP Data-Rismark National Home Value Indices. RP Data national research director Tim Lawless confirmed that prices improved across all price segments over the last six months.
Buyers on Increase - Clearance Rates Continue Upward Trend
Auction clearance rates were up in almost every capital city last weekend, according to Australian Property Monitors (APM). The auction clearance rate in Sydney hit a healthy 74.2 per cent, with $84.2 million in property sold. The 74 per cent auction success rate was well up on the same Saturday last year when a 46 per cent rate was achieved.
Beware of Getting into a Fix
IF YOU can feel the panic rising in your body about the possibility of higher interest rates, take a few deep breaths and consider this: all but the most hawkish commentators are saying there'll be no rises before the end of the year, with most tipping the middle of next year.
Consumer Confidence 'up'
Consumer confidence has risen towards a two year high driven largely by an increase in house prices and the resilience of the labour force. The Westpac-Melbourne Institute Consumer Sentiment Index increased by 3.7 per cent in August. According to Westpac senior economist Matthew Hassan, the index has risen 27.8 per cent since May, the biggest three month gain since the survey began in 1975.
Positive Data Suggests Robust Property Markets Ahead
Consistently high clearance rates and positive data from the Australian Bureau of Statistics (ABS) are pointing towards a consolidation in the housing market. ABS figures released this week show that finance commitments, excluding refinancing, were at their highest level for the past 18 months.
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