An annual survey has put a dim view on Australia’s housing affordability. The latest Demographia International Housing Affordability Survey reveals Australia’s housing market is the second least affordable behind Hong Kong. Sydney has the third most expensive housing market with a median multiple of 8.3. Melbourne was ranked number seven coming in with a multiple of 7.5.
A multiple of three or less is categorized as affordable.
Real Estate figures
The Real Estate Institute of NSW has reported a rise in rental vacancies across Sydney but has warned it is unlikely to last. Sydney lifted to 1.9 per cent in December. The Hunter reached a two-year high of 2.1 per cent and renters in Coffs Harbour welcomed 3.7 per cent of rental properties available.
Building activity fell in the December quarter according to a survey conducted by Master Builders Australia. The survey's index which measures current business conditions fell from 47.4 to 45.2 in the last three months of the calendar year. A reading below 50 indicates a decline in activity for the quarter.
Commentary
FNN spoke to RP Data's Head of Research, Tim Lawless on his outlook for Queensland and Western Australia’s property markets:
“Even though they are both resource intensive states. WA is I suppose much more resource incentive. It doesn’t have a lot of economic pillars. Whereas Queensland you have tourism, you have a big retail, construction is a big industry as well. And, I think we’ll start to see the economies move away from mining investment and infrastructure spending towards some of those economic pillars.”
“One of the other drivers also comes back to population growth. And Western Australia and Perth are still showing very strong levels of population growth, which would be read as housing demand. There hasn’t been a great level of housing construction across Western Australia. And, that under supply with probably also be a driver of housing markets.”
To watch more of the interview click
here.
Commercial property sector
West Australian property developer Finbar Group Limited
(ASX:FRI) expects to beat last year’s record annual net profit on the back of a boost in revenue following its completion of its first Pilbara apartment project.
Infrastructure developer Lend Lease Group
(ASX:LLC) has completed its work on the Peninsula Link freeway project in Victoria, with the road now open for traffic. The $655 million contract was completed in just under three years.
Westfield Group
(ASX:WDC) has acquired a 50 per cent stake in a retail centre in London after inking a deal to redevelop the centre with UK rival Hammerson.
Macmahon Holdings Limited
(ASX:MAH) directors have unanimously backed the proposed sale of its construction assets to Leighton Holdings Limited
(ASX:LEI).The sale will be put to a shareholder vote next month.
