CBRE thinks so…

The most recent OECD economic outlook report, released last night in Paris, has shown Australia’s projected economic growth close to the top three during 2012, behind only South Korea, Mexico and Chile. Long term projections to 2050 give Australia the highest growth rate in the developed world after Chile and Mexico. The report has underlined the high dollar, consumer confidence and jobs continue to drag on property prices (ED: as at posting the Aussie $ had dipped below 98c US.). Of note were projections to 2050 giving Australia the highest growth rate in the developed world after Chile and Mexico. So overall Australian’s should have reason to shake off the pessimism, eventually. Certainly CBRE see sunshine on the horizon. After taking a long hard look at the last twelve months sales data the team at CBRE have no doubt seen the opportunity to take a more aggressive approach in direct real estate investment market. No doubt other majors are attempting to position themselves, some more effectively than others… More…

No pressure Campbell

Following on from our previous article regarding housing prospects in the Sunny State, Ben Hurley from the AFR brings into focus the significance the newly appointed state government will play in the immediate direction of the property market (read here). Whilst the impending stamp duty discounts, due to be introduced 1 July, combined with a dose of renewed optimism in a change of government will mean a difference in existing home markets, the big focus in our growth equation come’s back to employment. A committment to restoring the State’s Financial AAA rating and the appointment of Peter Costello’s audit commission into the state’s financial situation, due to report in June, are sure to shape government policy. Shaping our markets growth within a financially constrained environment will take some ‘out-side-the-box’ type thinking. As we said, no pressure Campbell, your move.

Sunny State Prospects

An excellent report from Ben Hurley outlining key conditions and indicators for the upswing on the broader Queensland market. In summary, jobs growth + affordability + stamp duty discounts + interstate migration = positive market momentum. Interesting to note the overall picture on the Brisbane market becoming clearer, as indicated by our commercial associates, Brisbane’s surge in office space demand led by the resource sector will translate to city housing becoming an important part of 2012-2013. More…

Breeding like Bunnies: An investor strategy?

With plans to open another 85 stores nationally, investing some $1.5 billion and creating 6000 construction jobs, could the Bunnings chain of hardware stores expansion be an investment strategy worth taking note of. Following on from our article on Australia’s ongoing structural change, here we have one of our leading national companies with sufficient confidence to pursue expansion into consolidating and new residential areas. Are the construction of these an investor tell-tale for anticipated regional growth? More…

Chicken then Egg on Structural Change

An interesting thought on the structural changeĀ  we are experiencing. March sentiment survey from the Master builders Association indicates builders are expected to reduce their workforce. Calling on the RBA to cut rates the association reported new home sales and enquiry levels were weakening, and traffic to display homes was poor. MBA chief economist Peter Jones took the time to point outĀ  that although there were strong employment gains in the less labour-intensive engineering sector it was not enough to outweigh significant job losses in the stagnant residential and declining non-residential building sectors. More…

Now first of all, it must be heartening to those in the retail sector not being alone in facing challenges in the marketplace, secondly, clearly there is a transition occurring between housing and engineering industries which our labour market is adapting to. Thirdly, and the most interesting thing, where will the need for new housing and accommodation spring from? You guessed it, the ongoing and substantial engineering works taking place. The upshot? Our economy is constantly in progression, unfortunately it’s our labour market which has to adapt or die.

Pascoe Pumps Up the Jam.

Queensland, day 1 post-election and Michael Pascoe gives his perspective on what’s happening in the Sunny State. His experience at an earth-moving equipment auction (Ed:Why, How?) is insightful: “The auction was a small indication of the extent of a resources and capital investment boom that most Australians still don’t quite comprehenda boom that is still building and is yet to fully filter through to other parts of the economy.” He continues “Even in south-east Queensland, there is plenty of ignorance of what is happening in Gladstone, Mackay and the central Queensland coal fields.” More…

Olympic Dam = Opportunity.

News that BHP is getting on with the massive (try $30 billion) SA project has been welcomed after environmental impact studies commenced way back in 2005. Of interest “BHP will have to shovel rock for five to seven years before it reaches the Olympic Dam ore body, discovered in the mid-1970s.” posts Mineweb, Tom Koutsantonis, minister for mineral resources in SA adds “When it expands, the figures are a bit mind-boggling to get your head around, it will be a very large chunk of our gross state product and it will employ about 25,000 people directly and indirectly. It will create investment beyond our wildest dreams. Rio Tinto’s Vulcan project was likely to be as big as Olympic Dam and perhaps even bigger. The best anecdote I can give you is we’ve found the elephant, we are now looking for the herd,”. More…