Digital Finance Analytics (DFA) Blog
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The vexed question of how many foreign buyers are in the Australian residential property market, continues. The Master Builders of Australia estimated that foreign investors account for 5 to 6 per cent of the Australian housing market. Meriton said overseas buyers represented closer to 2.5 per cent of annual sales. The Foreign Investment Review Board figures show … Continue reading “More Than 5% Of Property Is Owned By Overseas Buyers”
RBA Governor Philip Lowe, addressed the National Press Club today, providing an upbeat assessment of the economy. He was even money on the next rate move, but interestingly he blamed lack of supply of housing not credit supply, or low interest rates for high home prices. He believes wages will rise, eventually. And finally he … Continue reading “RBA “Even Money” On Rate Rise Or Rate Fall”
We track the movement in the Bank Bill Swap Rate, as this directly, or indirectly impacts Australian bank funding costs, and of course has led to significant numbers of smaller banks repricing their mortgage books higher in recent weeks. The latest data shows that last week the 3 month benchmark fell very slightly, leaving funding … Continue reading “BBSW Rates Ease A Tad But…”
A non-bank lender has revealed how it stress-tests new residential projects amid fears of oversupply, rising defaults, falling property prices and a significant reduction in foreign buyers; via the Adviser. Growing fears surrounding the sustainability of Australia’s new apartment market have been growing since China tightened its capital controls, the Australian government introduced new regulations … Continue reading “Non-bank assumes 20% default rate for apartments”
The latest ABS data on residential building approvals were released today. The number of dwellings approved in Australia fell for the fifth straight month in February 2018 in trend terms with a 0.1 per cent decline. Approvals for private sector houses have remained stable at around 10,000 for a number of months. But unit approvals … Continue reading “Unit Approvals Fall In February”
Note that links are tested on posting, but not checked subsequently. 02 Dec 2015 – Sydney Morning Herald – Moula says small businesses still don’t trust fintech 02 Dec 2015 – Bloomberg – Price Cuts Herald Sydney Home-Boom End as Foreigners Retreat 24 Nov 2015 – 2GB – Payments and Security of Paywave 19 Nov … Continue reading “2015”
From The Conversation. The densification of Australian cities has been heralded as a boon for housing choice and diversity. The up-beat promotion of “the swing to urban living” by one of Australia’s leading developer lobby groups epitomises the rhetoric around this seismic shift in housing. Glossy advertisements for luxury living in our city centres and … Continue reading “Why investor-driven urban density is inevitably linked to disadvantage”
RBA Governor Philip Lowe spoke at the Economic Society of Australia (QLD) Business Lunch. Of note is the data which shows one third of households with a mortgage have little or no interest rate buffer, and that the Reserve Bank does not have a target for the debt-to-income ratio or the ratio of nationwide housing … Continue reading “Household Debt, Housing Prices and Resilience”
The Henderson Global Dividend Index found that total dividend payouts across all geographies rose a little – by 0.1 per cent – to reach US$1.154 trillion in 2016, reflecting flat profits. They are predicting a headline growth rate of 0.3 per cent in 2017 with global dividends forecast to reach US$1.158 trillion. The index covers … Continue reading “Banks Account for Half of the Australia’s Total Dividends”
So, suddenly its politically correct to be discussing “housing affordability”. But talk is cheap, as we discussed in a recent video blog. The problem is the political weight from home owners, banks, and the construction industry are all wedded to ever rising prices. The number of first time buyers are relatively small, so they have … Continue reading “Why Housing Affordability Talk Is Just Hot Air”