Australia’s central bank has decided to keep the nation’s official interest rate unchanged at 3 per cent at its February board meeting. Its decision has met analyst expectations. The Reserve Bank of Australia’s (RBA) Governor, Glen Stevens pointed to easing financial strains in the US and Europe, stabilising growth in China, improving sentiment and firming commodity prices among the factors influencing its decision. On the domestic property front, Mr Stevens noted there were improvements in dwelling investments as prices and rental yields move higher. Inflation is consistent with the medium-term target at around 2 ¼ per cent.
Real estate figures
Australian capital city house prices rose 1.6 per cent in the December quarter according to the Australian Bureau of Statistics (ABS). In the year to December, the house price index rose 2.1 per cent. Economists had expected prices for houses to be flat. The reading is an improvement from the 0.14 per cent drop the previous quarter.
Also out from the ABS is building approvals, which dropped 4.4 per cent in December. Economists had forecast a 1 per cent rise. Private sector housing approvals also fell, dropping 3.3 per cent for the month.
The RP Data-Rismark report has shown a solid performance in the Australian housing market to kick off 2013. The national dwelling value rose 1.2 per cent in January, swinging from a 1.2 per cent drop in the final quarter of last year.
Commentary FNN spoke with Westpac Banking Corporation's
(ASX:WBC) Global Chief Economist, Bill Evans about what impact last year’s interest rate cuts will have on the property market this year.
To watch more of the interview click
here.
Auction results
Sydney cleared 73 per cent rate from 27 properties for auction, Melbourne had a 75 per cent clearance rate from 20 properties, Brisbane 25 per cent from 11 properties and Adelaide cleared 50 per cent from 4 reported auctions.
Commercial property sector Westfield Group
(ASX:WDC) anticipates it will meet its interim dividend guidance of 24.75 cents, to be paid to shareholders at the end of this month. The retail property group is expected to announce its 2012 full year results at the end of this month.
FKP Property Group
(ASX:FKP) is reportedly close to finalizing plans for a new listed $825 million retirement property company. The new entity would be formed out of a merger between two funds currently managed by FKP.
Challenger Diversified Property Group
(ASX:CDI) has increased its half year net profit by 10 per cent to $20.8 million. Fund Manager Trevor Hardie says the growth in the company’s net property income was underpinned by its leasing activities.
GPT Group
(ASX:GPT) has put its 50 per cent stake in the Erina Fair shopping centre up for sale, expected to attract about $400 million in proceeds. The move comes as part of its strategy of moving away from retail assets. The property trust has recently sold out of shopping centres located in Canberra, Darwin and Brisbane.
