The Housing Industry Association is commencing its housing Australians campaign, identifying a series of distressing facts impacting new housing and encompassing taxation, unaffordability as well as what is currently a high level of job losses in the sector. A few of the more unsettling points to be highlighted in the campaign include:
- In 2013, Australia will build 25,000 less homes than a decade ago
- Building and construction has contracted monthly for the last 34 months
- Taxes, levies, fees & charges comprise 40 per cent of the cost of a new home
HIA Managing Director Shane Goodwin says access to affordable housing is one of the biggest challenges facing the Australian community. Mr Goodwin believes the federal government needs to act more constructively to meet the housing needs of Australian families and is hopeful of election year policies from all parties to improve housing affordability.
Real Estate figures
The Housing Industry association says new home sales continue to recover modestly after lfting by 4.2 per cent in March. Key indications of the recovery came in detached house sales, lifting by 3.9 per cent on the back of a 4 per cent decline in February, and multi-unit sales, growing by 5.6 per cent after an 11 per cent drop the previous month.
On the back of the slight sales recovery comes less welcome property sector news, with the RP Data-Rismark Home Value Index reversing its first quarter growth and dropping 0.5 per cent to a median price of $485 thousand in April, the first monthly decline since last December, representing a slight stumble along the path to recovery according to RP Data analysts.
Commentary
Turning to commentary, RP Data’s Research Director Tim Lawless has this week claimed the housing market is looking decidedly softer in April compared to the first quarter of 2013.
According to Mr Lawless:
“Dwelling values were up 2.8% over the first three months of the year, however it is likely that when we report our indices for the month of April we will be reporting a decline. The first quarter of the year has historically been the strongest in terms of value growth.”
Mr Lawless says other indicators remain robust, suggesting the April slowdown is more likely to be a blip on the recovery trend.
Australian auction results
This week’s auction results across Australian capital cities - Sydney recorded a 74 per cent clearance rate from 282 properties for auction, Melbourne cleared 68 per cent from 236 properties, Brisbane had a 44 per cent clearance rate from 51 properties listed and Adelaide cleared 56 per cent from 38 reported auctions.
Property sector headlines
DEXUS Property Group
(ASX:DXS) has entered into an agreement with Dexus Wholesale Property Fund to acquire a half share in a strategic office investment in Brisbane, estimated to cost $544 million. CEO Darren Steinberg believes it is an acquisition that leverages the company’s exposure to quality real estate in the core Brisbane CBD office market.
GPT Group
(ASX:GPT) CEO Michael Cameron says the property trust is on track to achieve at least 5 per cent growth in earnings per share for the full year after reporting strong leasing activity and a 98.3 per cent occupancy rate in the March quarter. Mr Cameron says high occupancy across GPT’s portfolio underpins uplift in values despite subdued market conditions.
Watpac Limited’s
(ASX:WTP) construction arm has finalised a $42 million design and construct contract to undertake a major expansion of Darwin International Airport. The developer says the contract, set to commence in April, is its first in the Northern Territory.
Westfield Group
(ASX:WDC) has offloaded its 50 per cent stake in a joint venture in Brazil. The retail property giant says it has sold the interest to the Almeida family. The proceeds from the sale, which represented less than one per cent of Westfield's assets, were in line with book value, but Westfield did not give a dollar figure.
