Land – Undersupply or Oversupply?

Interesting article from Adam Carr reflecting on the most recent housing data and what impact RBA action (or inaction, depending on your viewpoint) has had on housing activity. Comments got heated on the whole oversupply / undersupply discussion, but I thought these little gems worth sharing, “There is no shortage of residential land! Look at the state government body statistics on residential lot approvals!” – HQ. And from Bruce Meaney, “The housing industry needs more new homes, but it’s not interest rates holding back the starts, it’s the over valued price of blocks of land.”

A quick scan of shows 20 new land releases advertised in Queensland, 20 in NSW and 30 in Victoria. So is that enough land released to satisfy demand? Or are developers happy to drip-feed the market to retain their best return?


Chinese interest soars

The rise and rise of Chinese interest in Australia’s residential unit market continues to attract attention. Today Robert Gottliebsen from Business Spectator points out the surge in Chinese interest in off the plan projects in Sydney, Melbourne and Brisbane. Interestingly he points out the source of this continually expanding interest, “It seems that Chinese apartment investors have been quietly told that the Chinese government wants a subdued Chinese apartment market and that they would much prefer the investors to buy offshore (which also helps keep the Chinese currency down).More…


‘Can-do’ slashes red tape

Welcome news to the property industry with word sustainability declaration documents will be scrapped from sales contracts in Queensland. As reported by API Campbell Newman has wasted no time with his first cabinet meeting held yesterday announcing streamlining of the document process with legislation to be introduced to remove the problematic declaration forms. In addition the reinstatement of principal place of residence stamp duty¬† discounts providing concessions of up to $7000 for homebuyers. Legislation is due to be tabled from 1 July. 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.

Growth matched with inflation

Cameron Kusher (RP Data) reviews the March figures on national property prices, overall a 0.2% increase now since November 2010. Interesting to note rolling year to date Canberra has shown the least change (-0.3%). In summary, turning points for Brisbane and Perth while Sydney expected to be the frontrunner over the remainder of the year. More…

Pascoe serves it up, again.

The national economic journalistic equivalent of “Tell it like it is” Dr Phil, Michael Pascoe, hits the nail on the head once again with this piece on why we shouldn’t expect a rate cut. Not only do we see Soloman Lew cop a serve, so too does our beloved Ross Gittins and the remaining south-east structural change-deniers, finally wrapping up with props to Mackay, Qld. Can he be stopped? More…

(ED: Special extra points for the Basel III tip too).

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…