Home loan demand dips
Smoke signals heralding the cooling of the property market are starting to be observed on the horizon. This week’s data is showing an easing in home loan demand and the shift towards a buyer’s market is spreading across the country. Sydney and Melbourne continue to march to the beat of their own drums with investors driving home values higher particularly with in the inner city apartment market.
Economic news shows shift in trends
The latest CBA/RP Data home buyers index shows a decided shift towards a buyer’s market in August with just Sydney and Melbourne remaining a seller’s market amongst the capital cities. Queensland and Tasmania offer the best opportunities for buyers with WA and Northern Territory moving in favour of buyers during August. The ACT has moved from a seller’s market to be more balanced.
The ABS report on housing finance in August has shown loans have dropped a seasonally adjusted 1.2 per cent since July. Owner-occupier loans were down by 0.9 per cent while investor loans remain at peak levels. First home buyers make up just 11.8 per cent of news loans in August whilst the number of loans approved for new dwelling rose by 2.5 per cent.
Commentary
FNN spoke to Jessica Darnbrough from Mortgage Choice about what the latest reports mean for the rest of the spring selling season.
“Moving forward, we wouldn’t be surprised to see home loan demand remain relatively flat as potential borrowers wait to see what the Reserve Bank of Australia does. Last week the Reserve Bank made it clear that certain measures may need to be taken in the future in order to cool the hot property market and while no measures have been implemented as yet, their decision to talk publicly about the possibility of introducing certain restraints could encourage potential borrowers to delay their property purchases.”
Australian auction results
Looking at this week’s auction results across Australian capital cities - Sydney recorded a 79 per cent clearance rate from 747 properties for auction, Melbourne cleared 74 per cent from 903 properties, Brisbane had a 41 per cent clearance rate from 115 properties listed and Adelaide cleared 65 per cent from 82 listed auctions.
Commercial property sector
Stockland Limited
(ASX:SGP) will pay AMP Capital $59 million for a fifty per cent stake in Sugarland Shoppingtown in Bundaberg, Queensland.
Abacus Property Group
(ASX:ABP) and South Africa’s Kirsh Group will sell the Birkenhead Point outlet centre & marina in Sydney to Mirvac Group
(ASX:MGR) for $310 million after paying $174 million for the site in 2010.
Centuria Capital Limited
(ASX:CNI) has sold its reverse mortgage portfolio to an undisclosed buyer for $32.6 million in net equity.
Finbar Group Limited
(ASX:FRI) has completed the $100 million Spring View Towers joint venture project in Perth on time and on budget.
