REIA NEWSISSUE ONE: MAY 2011THE FEDERALBUDGET:WHAT ARE THEIMPLICATIONS FOR THEHOUSING MARKET? ALSO IN THIS ISSUE: PROPERTY PURCHASE: ARE WOMEN OUT IN FORCE? THE GREAT DEBATE: WHAT HOUSING BUBBLE? TAX FORUM: WHAT CAN WE EXPECT ON PROPERTY TAXES? HOUSE PRICE MOVEMENTS: WHY ARE THERE SO MANY VARYING ESTIMATES?
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PRESIDENT’S REPORTWELCOME:TO AN EXCITING NEW ERA FOR REIA Each month, we will provide you Over the last month, the with a document that addresses softening of house prices and what is happening in your state the general state of the property or territory, real estate news from market has been in the spotlight. around the world and important news from Parliament House. REIA felt that it was important to explain the change in median The newsletter will include house prices to ensure that the in-depth analysis on important doomsayers are set straight on issues from REIA Manager Policy, the natural cycle of house prices Jock Kreitals, REIA Manager in Australia; our media release Communications, Rhiannon titled ‘Decreased house prices McClelland and REIA Research can be attributed to natural Officer, Johan Rojas. cycle’ can is available by clickingI would like to welcome all here. As your representative to thereaders to the first edition of Government in Canberra, it is In this edition, we have alsoREIA’s new monthly newsletter, appropriate that our first edition addressed the issue of varyingREIA News. is focused around the Federal median house price figuresREIA is entering an exciting era Budget and the impact that this to provide readers with anled by the board and new CEO, will have on the profession. understanding of differentAmanda Lynch, and it is only sources and how they vary. The Budget wasn’t quite thefitting that as your national spectacle that we were expecting We would like to thank our Reallobbying body, we provide you which is good in some ways and News readers for your loyalty.with an interesting newsletter not in others; no changes to We hope that that REIA News iscentered around the issues that negative gearing on property but an enjoyable and informing read.are important to you and the real no focus on housing affordability.estate profession.
INDUSTRY ARTICLEINSURING YOUR RENT ROLL:WHY IT SHOULDN’T BE OVERLOOKEDIn addition to providing If the landlord has appropriate suffer financial difficulties that insurance, they will be covered for leave them unable to pay theircover for landlords, legal liability for occurrences on rent.landlord insurance has the property that cause death orunique benefits for bodily injury.property managers and ‘...they can still But, if the landlord doesn’t havetheir agencies: insurance, the tenant may direct lose their jobs orLess risk their claim towards you and your agency. suffer financialAn insured rent roll can help toprotect you and your agency from difficulties.’ Less stressprofessional indemnity claims. Most property managers dreadIf a tenant injures themselves in the thought of having to tell a Similarly, you might inform youra rental property as a result of landlord that something has landlords when maintenanceneglected maintenance work, happened to their property. work is required on theirthey may decide to sue their property, but you cannot controllandlord. It’s much easier to pick up the whether they will act upon this. phone and tell a landlord that a loss has occurred when they have In these situations, landlord‘If the landlord insurance cover in place. insurance provides peace of mind that your landlords – ashas appropriate Peace of mind well as you and your agency – Despite your good intentions and will be protected.insurance, they will the strict procedures you have inbe covered for legal place, things can still go wrong. For further information, visit www.terrischeer.com.au or callliability.’ You can select the very best 1800 804 016. tenants for your landlords, but they can still lose their jobs or
INDUSTRY ARTICLEINSURANCE ADVICE:PLANNING FOR THE UNEXPECTEDRead, know and By taking the time to read through deductible appropriate for your policies in detail, an organisation business.understand. When can work on mitigating potentialwas the last time you losses in the future.read through your ‘...an organisation Key points to keep in mindorganisation’s insurance when reviewing documentation needs to clearlypolicies? It’s critical that includes: understand whatall policies and coverageoptions are reviewed on • How will the policy respond to type of cover they a particular event?a regular basis. • Do you understand the have...’ implications of one coverageFollowing the devastation caused option over another? It has become paramountby floods in Queensland, northern • Does your policy address all that as the insured party, anNew South Wales and Victoria, it your business concerns? organisation needs to clearlyis crucial for businesses to assess understand what type of covertheir continuity plans and how to Floods they have and how it willprepare for the unexpected. In the case of natural disasters, respond in the event of storm if flood is a real exposure and damage versus a flood. is required, this would need‘...an organisation to be investigated with your Currently, there isn’t a standard broker as policies often do notcan work on automatically include flood cover. definition of flood for insurance purposes and it can vary frommitigating potential You’ll also need to consider an policy to policy with differentlosses in the future.’ adequate predetermined flood insurers. limit cover and a flood specific In general terms a flood is often defined as the release of
water from a natural course suchas a river, dam or stream onto ‘It’s never too • Value and protect your trading income.otherwise dry land. This differs to late to take stock • Identify the hazards andstorm water run-off which may risks to your business tobe described as a body of water and plan for the adequately risk managemaking its way to a water course. remainder of against them to avoid potential for a claim.Expertise 2011...’ • Make sure you understandAgainst this backdrop of policy your policy, what’s coveredterminology, it’s important to deal and how it will respond in In terms of your coverage thewith an experienced insurance the event of a claim. following are some key pointsbroker who can identify potential • Always ensure past claims to consider when assessing yourexposures and develop a plan are disclosed in full to your insurance options:to manage the risks by way of insurance broker and insurer.insurance where appropriate. • Most importantly, establish a relationship with a trusted Aon – here to helpWith Aon, you get the benefits As your broker, Aon is here to insurance broker whoof secure insurers, quality provide you with professional understands your industrycover, experienced brokers, in- guidance and assistance, and to and your business insurancedepth industry knowledge and liaise with the insurer on your requirements.competitive premiums. behalf. • Make sure you are fullyThinking ahead covered – underinsurance can Visit our website at www.aon.So how does one avoid future and be costly. com.au/realestate for moreunexpected events? • Understand the full information or call your localWell, it’s never too late to take replacement value of your Aon representative on 1300 734stock and plan for the remainder assets, new for old. Obtain a 274.of 2011 and beyond – with an current property valuation ifinsurance health check. necessary.
ON THE COVERTHE FEDERAL BUDGET:WHAT ARE THE IMPLICATIONS FOR THE HOUSING MARKET?Real Estate Institute Unfortunately, housing affordability has been ignored by ‘Unfortunately,of Australia (REIA) the Government. housingmanagement enteredthe Federal Budget This is disappointing, given affordability hasLock-Up with the the critical state of housing affordability in Australia and been ignored byexpectation that we that first home buyers now the Government.’would be criticising the make up only 15 per cent of the purchasers’ market when thisGovernment for changes figure was as high as 30 per cent considered the plight ofto negative gearing on those looking to purchase an in October 2009, during the time affordable home is a ‘suburbanproperty, but not so. of the First Home Owner Grant jobs initiative’ which will be Boost (FHOG Boost).To our surprise, the Budget wasn’t implemented to encouragequite the horror Budget that most In the recommendations REIA put the creation of employmentexpected, with a fairly even mix of to the Government in our Pre- precincts in outer metropolitanpositive and negative implications Budget submission, we called for suburbs and provide support forfor the real estate profession and a review of the First Home Owner regional areas to plan for futurehousing market. Grant (FHOG) but also thought growth in housing supply. outside the square and proposed The Government will also wind- first home buyers be granted down the Housing Affordability‘...the Budget access to their superannuation to Fund (HAF) in 2012-13; REIA make purchasing a home morewasn’t quite the achievable. called for a review of the HAF in its Pre-Budget Submission tohorror Budget that The only indication that the assess its effectiveness.most expected.’ Government has For ease of understanding, REIA has broken the issues that will
WHAT IS BEING SAID POST-BUDGET?“Difficulties accessing affordable credit “Unfortunately, the Budget fails to A growing population deserveswill be made worse as this Budget puts deliver any dedicated policies to alleviate affordable homes and housing choice”upward pressure on interest rates and Australia’s chronic housing shortage,the Commonwealth borrowings of which at around 200,000 dweliings and Peter Verwer, Chief Executive,$135 million a day crowds out small growing, continues to place pressure on Property Countil of Australiabusinesses seeking finance. Burgeoning the households budget of home buyersred-tape burdens are made worse and renters” “We welcome tonight’s announcementwith new disincentives and punishing as the first step in the developmentreporting requirements for independent Andrew Harvey, Senior Economist, of a National Urban Policy, but we arecontracting and new compliance Housing Industry Association concerned that housing is merely acomplexities for employer-supplied footnote in the budget”vehicles.” “The Government’s investment in skills and employment alone is welcome Caryn Kakas, Executive Director ,Bruce Billson, but may not be enough to lift business The Residential Development CouncilShadow Minister for Small Business and consumer confidence, and bolder leadership is likely to be needed over the‘The Budget is silent on the crisis in coming period to secure Australia’saffordable housing. The only goodhousing news in the budget reflects the economic future.” QUICK LINKSGreens win on preserving the National Wilhelm Harnisch, Chief ExecutiveRental Affordability Scheme. Apart from Officer, Master Builders Australia • REIA Budget Overviewthat, the housing affordability agenda • REIA Budget Mediahas stalled.’ “ A more productive economy, along Release with a larger and more skilled labour • REIA Pre-BudgetSenator Scott Ludlam force,needs affordable housing.Australian Greens Submissionhave implications for the real Rental Affordability Scheme • Implementation of aestate profession and housing (NRAS) over a longer period ‘suburban jobs initiative’into three categories; property of time. • Funds allocated to Trainingspecific, property related and • No expenditure by to meet skills shortagessmall business. Department of Climate • Funds allocated to Change and Energy Efficiency investment in regionsProperty specific for roll-out of mandatory• No change to negative disclosure of Energy Efficiency Small business gearing arrangements Ratings (EERs). • Tightening of FBT for• No change to Capital Gains • Restoration of the treatment employers Tax (CGT) arrangements of GST on new residential • Changes to the company tax• No change to the assistance developments rate currently provided to first • Deduction on a motor home buyers (retention of the Property related vehicle FHOG). • Inflation and underlying • Simpler depreciation to• The Government will spread inflation to increase longer-life assets the roll-out of the National • Write-off of assets under $5,000 • Paid Paternity Leave • Continuation of the SmallTHE FIGURES 2010/11 2011/12 2012/13 Business Support Line Budget surplus - cash balance REIA has put together a more in- -49.4 -22.6 3.5 ($billion) depth overview of each of these Consumer Price Index (percentage) 3.25 2.75 3.0 points to assist you, download Unemployment by clicking here. 5.0 4.75 4.25 (percentage change) Private investment in dwellings 2.5 1.5 3 (percentage change)
PROPERTY PURCHASE:ARE WOMEN OUT IN FORCE?A new report released However, anecdotal evidence increase in the number of from the lender suggests the women buying for investmentby RAMS suggests that trend towards sole female purposes.”Australian women are property ownership varies acrossnot waiting to find the states. There is no formal research showing actual figures ofperfect man. Cheryl Haywood, Principal of the percentage of womenThe research has assessed lending RAMS Southern Vales in South purchasing, however, there isapplications of clients and RAMS Australia said “I’ve dealt with enough anecdotal evidence toChief Operating Officer, Susan a number of single female draw the conclusion that femalesBannigan said there is a growing refinance deals as newly single play a very important role in thetrend towards sole home loan women reposition themselves purchase of a home.applications from women. as the household owner as a result of a marital or relationship REIA sought further information“The last year has seen the breakdown. These kinds of deals on this issue from John Runko,number of sole home loan are becoming more and more CEO of Independent Propertyapplications submitted to us by common.” Group (2011 REIA Hall of Famewomen reach an almost 50% Awardee for Large Residentialnationwide split with sole male Jenny Karabatsos, Business Agency of the Year andapplicants who usually make 70% Manager at RAMS Alphington Communications Award), Peterof sole applications,” she said. in Victoria says she has noticed Sissons, Managing Director of the change at her local office, Sissons Estate Agents (2011 REIARAMS formal research does not “Over the last year we’ve seen a Hall of Fame Awardee for Smallclarify whether females applying definite increase in the number Residential Agency of the Year)for loans are applying on behalf of women visiting us to talk about and Tim Heavyside, Director ofof them and their partner or sole application home loans. The Fletchers Real Estate (Winnerwhether they are entering the majority tends to be for owner of the 2011 REIA Residentialproperty market on their own. occupier loans but there is also an Salesperson of the Year).
WEIGHING IN:John Runko, CEO, Peter Sissons, Managing Tim Heavyside, DirectorIndependent Property Director, Sissons Estate Fletchers Real EstateGroup Agents“A recent sample of almost 600 “For quite some time, the major “Success stories of youngproperty transactions conducted decision-maker has been the females who purchase allby Independent Property Group female. forms of real estate, are nowthis year, revealed that contrary commonplace. With moreto popular opinion, the gender Men tend to regard a purchase power, education, confidencebalance of women buying as buying a house and are and cash, more and moreproperty in Canberra remains more analytically focused in women are buying real estaterelatively unchanged. their decision-making process, either alone or with a partner whereas ladies regard their as the main decision-maker.Of the sample size, 49% of purchase from a point of view of it Women tend to see potentialproperties were bought by being a home and emotion plays and look at homes from acouples, 34% were bought by a more significant role when it practical angle.men on their own and 17% were comes time to make a decision.bought by women on their own. I would say that people lookingIf anything, the trend had swung Over recent times we have seen to buy consist of an even mix ofmore to single people buying more young single ladies and gender.on their own, with only half the female divorcees purchasing insample properties being bought their own right. However, when a couple isjointly by couples. purchasing together, 90% of Presentation, maintenance and the time it is the wife or theAlthough men bought twice as cleanliness play big parts in a girlfriend who have the powermany of the sample properties on ladies’ decision-making process, to ‘tip the balance’. There is atheir own than women, women as in our experience they prefer saying in life, ‘happy wife, happyare certainly having a greater not to incur additional work in life’. I know that’s the case in myinfluence in the buying decision of fixing up a property after they marriage!”couples than they have had in the purchase.“past.”
THE GREAT PROPERTY DEBATE:WHAT HOUSING BUBBLE?REIA CEO, Amanda Lynch Property Group.will participate in a live paneldiscussion on Tuesday 7 June • Professor Steve Keen, Associate Professor University SEE THEat the Wesley Centre in Sydney,regarding the much-debated • of Western Sydney N.S.W. Kris Sayce, Editor & Chief, DEBATE FORhousing bubble. • Money Morning Publication. David Collyer, Campaign JUST $40The so-called housing bubble has Director, Prosperbeen a topic of much discussion As a subscriber of REIA Organisation.over the past few years and News, you can purchase athe debate aims to put all the Master of Ceremonies for the ticket to this event for justopposing opinions on one stage event will be Mr David Hayward, $40.00.and have a not-to-be-missed Chief Executive of The Moneydiscussion about house prices and Details are as follows: Institute.where the market is headed. As a member of the real estateThose participating in the debate When: 7th June, 201 profession and subscriber of REIAare: Start time: 11.30am News, you have the opportunity Finish time: 2.00pm to see the debate for just $40.00• Amanda Lynch, Chief Where: Wesley Centre, 220 (normally $50.00). Executive Officer, Real Pitt St, Sydney Institute of Australia (REIA). For background information Info Hotline: 02 8004 2444• Harley Dale, Chief Economist, on REIA’s position and research Register online: (Limited Housing Industry Association conducted by the Institute. seats available) . (HIA). click here. Click here to register.• Shane Oliver, Chief Economist, AMP Capital Markets.• Dr Tony Hayek, Chief Executive Officer, Blue Wealth
AND THE OPINIONS ARE...Amanda Lynch Harley Dale Professor Steve Keen,CEO, Real Estate Institute Chief Economist, Housing University of Westernof Australia Industry Association Sydney & Debt Watch“Many analysts have focused ‘“House price crash talk isn’t “Rising mortgage debt causedtheir attention on the house new and it continues to be the house price bubble; nowprice-to-income ratio in more successful than any other that debt has peaked, theAustralia and observed that topic in generating sensational same force that drove houseit is high compared to other headlines that scare the living prices up will drag themcountries, even at levels similar daylights out of people. down.”to those in the US beforeprices crashed. There are many challenges facing the Australian residentialHowever, this ratio is not sector, including the need to aidan accurate and sufficient entry level buyers and rentalindicator of housing households.overvaluation, and other houseprice determinants need to be The focus should be on whatconsidered.” needs to be done to alleviate upward pressure on dwelling prices.” TO SEE THE OPINIONS OF ALL PARTICIPANTS IN THE GREAT DEBATE, CLICK HERE.
TAX FORUM:WHAT CAN WE EXPECT ON PROPERTY TAXES?In early April, the Federal ‘In 2007, the This would be the most efficient means of raising revenue. TheGovernment announced incoming Labor reason given is that land is anthat it will hold a Tax immobile resource and land taxForum on Tuesday 4 Government generates a more stable sourceOctober and Wednesday showed an initial of revenue.5 October at Parliament zest for reform...’ Additionally, according to theHouse in Canberra. Henry Review, stamp duties In 2007, the incoming Labor are highly inequitable becauseThe forum, which stems from Government showed an initial they discourage transactions ofa commitment linked to the zest for reform and commissioned residential property and peoplesupport of Independents to form the comprehensive review from changing their place ofa minority Labor Government Australia’s Future Tax System residence as their personalfollowing the 2010 election, (Henry Review). circumstances change.will have sessions to discuss,amongst other things, state taxes Regrettably, GST was not part- including property taxes. of the considerations, which ‘...stamp duties are hampered the Henry Review’sREIA has been lobbying the considerations. highly inequitableFederal Government thatstate-based property taxes are The review noted that state- because theyinequitable, inefficient and an based property taxes are highly discourageunstable source of revenue and inefficient and an unstable sourcehas suggested that replacing of revenue for states and should transactionsproperty taxes with other more be replaced by an alternative broad-based tax such as a land of residentialefficient taxes would provideconsiderable economic benefits. tax. property...”
This article is brought to you by REIA Manager Policy, Jock Kreitals. Jock can be contacted at firstname.lastname@example.orgThe Henry Review also made It could be argued that with a Modelling undertaken showsthe following recommendations number of difficult current issues that by removing conveyancingregarding property: to deal with, including carbon and insurance duties and pricing, a low standing in the polls, reducing land tax and funding• The replacement of negative and a precarious hold on power, the shortfall by a federal and/ gearing and capital gains taxes the appetite of the Government or state broad based tax, GDP with the introduction of a 40 for any serious immediate reform growth of 1.7% would result. per cent discount for income in regard to property taxes is not from rental properties. likely to be high. REIA will be seeking a• The replacement of the commitment to reform over the current Capital Gains Tax Nevertheless, REIA will be strongly longer term as the economic (CGT) arrangements with an presenting its case for reform of benefits are clear. accrual-based system. state property taxes. REIA will also be seeking• Owner-occupied housing The REIA will point out that maintenance of existing should be tax exempt. reform of state property taxes will arrangements regarding CGT andThe Government, in its response lead to economic growth. negative gearing.to the Henry Review just one year Economic growth provided byago did not accept any of theseand specifically rejected ‘REIA will be reforms to property taxation should be of interest to allthe following: strongly presenting governments as we cannot rely• Introducing a land tax on the its case for reform on the Chinese boom to provide the impetus for growth for ever.• family home; Reducing the CGT discount, of state property and; taxes.’• Applying a discount to negative gearing deductions.
PROPERTY PRICE MOVEMENTS:WHY ARE THERE SO MANY VARYING ESTIMATES?The media quotes many of bedrooms/bathrooms, improvements and so on. ‘Movement insources when reporting house priceson the latest movements Several property data providersin house prices, meaning – REIA (Real Estate Market Facts are very hardone could be excused report), APM, RPdata, ABS and Residex publish house price to measurefor thinking that they movements. accurately as eachcannot all be correct. As can be seen in the table of house differs fromREIA explains why theyare correct and how they house price movements (to the right) for the December quarter the next.’differ. 2010, estimates vary greatly by each data provider. In summary, the approaches employed are: The differences arise from‘One could be differences in methodology and REIA – House price growth ratesexcused for thinking the sources of data. are based on “raw” median price. The median price is thethey cannot all be All property data providers collect middle value of property sale data from the Valuer Generals’ orcorrect...’ Land Titles’ offices in each state prices in their ascending order. and territory. RP Data-Rismark – AppliesMovements in house prices are hedonic measures that arevery hard to measure accurately With the exception of NSW, based on regression techniquesas each house differs from the SA, and ACT, the REIA collects to control for compositionalnext in regards to location, size, property data from the Real changes and quality change.aspect, build quality, number Estate Institutes, which, in This methodology requires turn collect data from their detailed information on the corresponding state departments.
This article is brought to you by REIA Research Officer, Johann Rojas. Johan can be contacted at email@example.com of the homes sold methodology employed by APM explain the discrepancy of pricei.e. land size, location, number of but with some modifications. growth estimations betweenbathrooms/bedrooms, etc. REIA and the rest of property Residex – Uses a repeat sales data providers.APM – Employs a stratified method which consists ofmedian price method to control examining purchases and sales of The REIA’s property pricefor compositional changes in the the same properties over time. estimates provide a goodsample of transactions. assessment of the dynamics of These differences in the property market in Australia,ABS – Employs a stratified methodologies, along with the as they show not only themedian price method similar to differences in data sources, most recent property market trends but also the historical trend of property prices since House Price Movements - December Quarter 2010 1980, providing a useful sourceCity RP data APM ABS REIA for short-term and long term analysis of property priceSydney -0.5% 1.1% 1.6% 1.1% movements in Australia.Melbourne -1.0% 2.1% 1.3% 6.9% For further information onBrisbane -1.1% -1.4% 0.7% 0.6% REIA reports and REIA dataAdelaide 1.1% 0.2% 1.1% 1.4% spreadsheets, click here.Canberra -1.7% 1.7% 1.9% -1.0% The REIA collects NSW, South Australia and ACT property data from APM, the Department forPerth -2.4% -1.5% -3.2% -1.8% Transport, Energy and Infrastructure and ACTPLA, respectively. REIV collects property data fromHobart n/a 2.6% 1.1% 0.7% real estate agents, REIQ from the Department of Environment and Resource Management, REIWADarwin -1.4% -0.4% 0.0% 1.3% from the Western Australia Department of Land Administration, REIT from real estate agents andAustralia -0.9% 0.7% 0.7% 2.4% REINT from the Australian Valuation Office for the Valuer-General of the Northern Territory.
Industry UpdateIndustry news from around AustraliaLand release the goal for the Dr Richards oversees the RBA’s event. Click here to register yourACT Budget analysis of the domestic and place. international economies for theACT Treasurer Katy Gallagher monetary policy process and NT Budget delivers forhas handed down the ACT will be providing an overview housingGovernment’s 2011-12 Budget. of economic conditions at the luncheon. The NT Budget 2011-12 BudgetThe ACT Treasurer said has placed a focus on helpingaffordability is important and to Dr Richards began his career families to get ahead.continue to address the supply of in the Reserve Bank, beforeaffordable housing in the territory, spending ten years at the The Henderson Governmentin 2011-12 the Government will International Monetary Fund in said the 2011-12 Territoryrelease 5,500 dwelling sites on Washington DC and his academic Budget delivers BuildBonus, a2011-12, and a total of 18,500 and policy research has been $10,000 grant to homebuyers toover the next four years. published in leading international purchase or build a new home economic and financial journals. to the value of $530,000 to helpREIQ: RBA economic He holds a Bachelor of Economics families get ahead and stimulate with Honours from Sydney more housing construction.outlook University, a Masters in Public BuildBonus applies from theThe Real Estate Institute of Administration from Harvard release of the Budget forQueensland (REIQ) and Aon University, and a Ph.D. in Business contracts signed to the 31are proud to present Dr Tony Administration from the George December 2011, whereRichards, head of the Reserve Washington University. construction has commencedBank of Australia (RBA) economic from 3 May 2011. The scheme The REIQ invites you to join us atanalysis department at the 2011 aims to stimulate new home the exclusive REIQ member price.Principal Licensee Luncheon construction, particularly for uniton May 27 at the Sofitel Hotel For the most accurate economic developments in the pipeline.Brisbane. insight of 2011, don’t miss this
Making NewsGeneral national newsNew national building building or upgrade of an and taxes and continuing globalstandards existing public building. uncertainties. For further information, While the index of ExpectedLast week, the Gillard click here. Economic PerformanceGovernment announced rebounded from its recentthe start of new building trough in the March quarter, theaccessibility standards, which Business Expectations index remains significantly belowwill ensure all new and Survey shows weakness in the level recorded in Marchupgraded public buildings in business conditions 2010.Australia will be accessible topeople with a disability. The May 2011 Commonwealth For further information, Bank - ACCI Business Expectations click here.The Disability (Access to Survey found most actual andBuildings - Premises) Standards expectation indicators for Report of the Senate2010 (Premises Standards), business deteriorated over the Economics Referencesis an important milestone in March quarter compared to thethe Government’s National Committee same time last year, except theDisability Strategy. The start indexes of Wage Growth, Non- The Senate Economicsof the national Premises Wage Labour Costs, Employment, Committee has handed downStandards marks a huge and Investment in Plant and a report on competition in theimprovement for access to Equipment. Australian Banking Sector.buildings for people withdisability, Attorney-General Overall business sentiment REIA put a submission forward remained soft in the MarchRobert McClelland said. From to the Inquiry. quarter amid a spate of severethis month, the new Premises natural disasters, the appreciation To view the report, click here.Standards will apply to any of the Australian dollar, theapplication for a building prospect of rising interest ratesapproval for a new public
Political WatchInformation and news from governmentGovernment announces financial environmental for small the out-of-pocket costs for aFederal Budget business in Australia. typical 1.5 kilowatt (kW) solar panel system, before taking into To view the REIA’s media account ongoing electricity costThe Treasurer, Wayne Swan, release on this issue and see thesaid the 2011-12 Budget will get savings and any state or territory reccomendations made in the based feed-in tariff incentives.Australia back in the black, get report, click here.more people in jobs and spread It could be useful for realthe opportunities of the mining estate professionals to haveboom to more Australians. The Climate Change Minister background information on thisGovernment will return the announces changes to solar topic when selling a home withbudget to surplus in 2012-13, credits roof-top solar panels.according to the Treasurer. The Minister for Climate Change To download the fact sheet,Access to finance for small and Energy Efficiency, Greg click here.and medium business Combet, announced adjustments to the Solar Credits arrangements ACMA reminds industry in light of continued strong about privacy obligationsLast week the the Parliamentary growth in the industry, the impactJoint Committee on Corporations of this on electricity prices, andand Financial Services handed Australian Privacy Awareness the impact of the Solar Credits ondown its report as a result of the Week was held from 2-7 demand for other clean energyInquiry into Access to Finance for May and the Australian technologies such as solar hotSmall and Medium Business. Communication & Media water heaters. Authority (ACMA) have takenThe committee made a number the opportunity to remind From 1 July 2011, the Solarof recommendations that, if relevant industries that Credits multiplier will provideimplemented, will improve the privacy is very important households with upfront support equivalent to around a third of
Political WatchInformation and news from governmentwhen dealing with consumer in Melbourne (-2.5%), Sydney falls in Western Australia (-8.4%),information. (-1.8%), Brisbane (-2.5%), New South Wales (-5.6%) and Adelaide (-1.0%), Canberra South Australia (-2.1%) whileREIA have kept provided (-0.4%) and Darwin (-1.0%), and there were rises in Queenslandinformation via our previous increased in Perth (+0.5%) and (8.2%) and Victoria (3.7%).newsletter format, Real News, Hobart (+0.4%).on what your obligations are as For further information,a property professional. For further information, click here. click here.If you would like to refreshyour understanding of what ABS Consumer Price Indexis required of you by law ABS Building Approvals The Australian Bureau ofwhen dealing with consumer ABS Building Approvals show that Statistics (ABS) last monthinformation, click here. the total number of dwellings released the Consumer Price approved rose 9.1% in March Index for December 2011.ABS House Price Index 2011, in seasonally adjusted terms, after falling 5.3% in The Index rose 1.6% in theThe Australian Bureau of February. Dwelling approvals March quarter 2011, comparedStatistics (ABS) last week increased for the month of March with a rise of 0.4% in thereleased the House Price Index in Victoria (26.8%), New South December quarter 2010. Thisfor the March Quarter 2011. Wales (8.5%), Tasmania (5.8%) is the largest quarterly rise in and Western Australia (3.4%) the CPI since June quarter 2006Preliminary estimates show when the CPI increased 1.6%. . while South Australia (-22.5%) andthe price index for established Queensland (-15.0%) recordedhouses for the weighted For further information, decreases in seasonally adjustedaverage of the eight capital click here. terms. In seasonally adjustedcities decreased 1.7% in the terms, approvals for private sectorMarch quarter 2011. The houses fell 0.8% in March withcapital city indexes decreased
The WorldProperty news from around the worldUS established house sales we’re clearly on a recovery path,” since the second half of laston the increase he said. year, ordering banks to bring their off balance-sheet trust However, Mr Yun noted that a loans back onto their books.According to the National number of potential home buyersAssociation of Realtors (NAR), are still facing difficulties when it In March alone, at leastsales of existing homes within comes to obtaining a mortgage. 35 property trusts werethe US property market are on launched, totalling 9.8 billionthe long road to recovery in yuan ($1.5 billion), double China reportedlyMarch. February’s level, the Beijing tightening rules for Times said.With sales bottoming out last property trustsJuly, news that the number oftransactions completed over the A leading Chinese newspaper, Rents hit the roof incourse of the month increased is has this month reported that Mumbai, up by 11%sure to be welcomed by investors. among new requirements, property developers may be Rising realty rates may haveA seasonally-adjusted 3.7 per ordered to set aside more cash resulted in a sharp declinecent growth in single-family, before they sell their projects in property sales, but it hastownhomes, condominiums to investors via trusts. led to a growth in rentaland co-op sales was recorded in value in Mumbai and otherMarch. If implemented, these new metropolitan cities in the requirements would make country. Mumbai and theLawrence Yun, NAR chief it even harder for propertyeconomist, said that he expected outskirts of the city has seen developers to get funding. an 11% growth in rental valuethe improving sales pattern withinthe US market to continue. in the past year, according to The China Banking Regulatory a study conducted by private Commission, the banking“Existing-home sales have risen real estate portal, 99acres. watchdog, has clamped downin six of the past eight months, so com. on off-balance financing as well
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