If every house in the United States changed all of the light bulbs in their house, that would be equivalent to taking one million cars off the streets.
Archive for the ‘Capital Growth’ Category
AUSTRALIA’S housing market is unlikely to suffer a “structural collapse” on the scale of America’s property rout, a new report says.
This is despite deep household vulnerability to further rate rises.
But the two-speed economy is a “serious problem” for the market, with confidence sliding as weak demand buffets employers in the retail, manufacturing and tourism sectors.
The report, by investment research group Morningstar, comes as Housing Industry Association data reveals that sales of new homes in April were down 10 per cent on the same month a year ago.
About 7700 new homes were sold nationwide – up 0.2 per cent on the March sales, but down from about 8600 a year earlier.
HIA chief economist Harley Dale said the rate of new unit sales was about half the long-term average, while new home sales were more than 20 per cent below long-term figures.
“That profile is an unfortunate indictment of the weak new home building conditions … but it’s nothing compared to what we’ll see if another rate hike bullet is fired,” Mr Dale said.
In research on the outlook for the banking sector, Morningstar’s analysts said uncertainty in share markets was also sapping confidence in the property market at a time when households were already highly geared.
But despite softening house prices, there was “no cause for alarm” for the banking sector, the Morningstar report said.
It comes amid speculation that professional investors are short-selling Australian banks as a means of betting that house prices will fall.
Short sellers effectively gamble on falling stock prices by borrowing shares and selling them, hoping to buy them back at a lower price.
Shares in all four major banks fell heavily last week and lost further ground yesterday.
The Morningstar research team, led by head of Australian banking research David Ellis, urged investors holding shares in the major banks “to be patient”.
“Despite widespread coverage and speculation we do not see sufficient pressure on the sector to change our positive view.”
The report nominated the banks’ reliance on wholesale funding borrowed from international investors as a “structural weakness, but one that is slowly becoming less important”.
A major slowdown in Chinese economic activity would put downward pressure on bank share prices, it said.
|
|
Annual (% change)
|
Six monthly (% change)
|
Quarterly (% change)
|
||
|
Rank
|
Location
|
World Region
|
Q1 2009-Q1 2010
|
Q3 2009-Q1 2010
|
Q4 2009-Q1 2010
|
|
1
|
China (key cities)
|
Asia Pacific
|
68.0%
|
NA
|
NA
|
|
2
|
Hong Kong
|
Asia Pacific
|
30.6%
|
10.3%
|
6.2%
|
|
3
|
Singapore
|
Asia Pacific
|
24.3%
|
12.5%
|
4.9%
|
|
4
|
Australia
|
Asia Pacific
|
20.0%
|
10.2%
|
4.8%
|
|
5
|
Israel
|
Middle East
|
15.9%
|
6.3%
|
2.2%
|
|
6
|
South Africa
|
Africa
|
11.8%
|
7.2%
|
3.8%
|
|
7
|
Canada
|
North America
|
11.6%
|
4.4%
|
1.0%
|
|
8
|
Finland
|
Europe
|
11.3%
|
5.1%
|
2.2%
|
|
9
|
Norway
|
Europe
|
10.8%
|
3.4%
|
3.4%
|
|
10
|
Sweden
|
Europe
|
10.7%
|
3.7%
|
1.9%
|
|
11
|
United Kingdom
|
Europe
|
8.8%
|
1.7%
|
0.5%
|
|
12
|
Austria
|
Europe
|
8.7%
|
4.8%
|
2.8%
|
|
13
|
India *
|
Asia Pacific
|
8.4%
|
8.0%
|
NA
|
|
14
|
Colombia *
|
South America
|
8.2%
|
3.8%
|
1.0%
|
|
15
|
New Zealand
|
Asia Pacific
|
6.8%
|
1.1%
|
0.5%
|
|
16
|
Switzerland
|
Europe
|
6.2%
|
2.5%
|
1.4%
|
|
17
|
Netherlands
|
Europe
|
6.1%
|
1.0%
|
1.4%
|
|
18
|
Luxembourg
|
Europe
|
5.6%
|
2.5%
|
2.2%
|
|
19
|
Portugal
|
Europe
|
3.8%
|
2.4%
|
0.3%
|
|
20
|
Malaysia *
|
Asia Pacific
|
3.3%
|
0.8%
|
-0.1%
|
* Countries yet to report Q1 2010 data, Q4 2009 data shown.
- $1m home a sign of mining boom February 21, 2012IF IT sells, it will be the first million-dollar home in Queensland's central highlands town of Capella. […]
- Man sells house for $1 million using Twitter February 21, 2012A TECH-savvy Melbourne homeowner has sold his house for more than $100,000 above the reserve using Twitter to advertise it. […]
- House stripped and burned but no payout February 20, 2012HOUSE wrecked after demolition company allegedly turned up to the wrong address - and that was just the start of the trouble. […]
- Property novices itch to switch February 19, 2012FIRST-home owners are on the hunt to refinance their mortgage within two years of entering the market, a new report says. […]
- Never too young to buy property February 19, 2012IT'S a case of walking before they can even crawl for some very young property owners and their numbers are likely to increase. […]
