MacroBusiness
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at 12:00 pm on May 12, 2021 | 2 comments
Australian property market prices continued to climb over the last month, and mortgage interest rates stayed constant. There are some extraordinary divergences in affordability. It has never been cheaper in most markets to service a mortgage, but never more expensive to save for a deposit or pay off the loan. In general, housing valuation and affordability statistics are improving outside of Sydney houses. For investors, rental yields have never been lower in an absolute sense, never higher relative to mortgage rates.
The net effect is that the Federal Government and Reserve Bank have successfully distorted conditions to encourage as many people as possible to borrow as much as possible. An investment in housing is basically a vote of confidence in their ability to keep force-feeding the market.
“There’s a very natural focus on [the cultural sector’s] importance in how we think and feel and how we interact with the world and how we make sense of ourselves. But in this focus, some of the attention to its economic impact is being lost.”
According to ABS data, the arts and entertainment sector
employs four times as many Australians as coalmining, and the same number of Australians as the entire finance sector.
For every additional $1bn in turnover in the mining industry, an additional 472 jobs are created. For every additional $1bn in turnover in the building industry, 1,242 new jobs are created.
Where the bargains are: Opportunities remain for first-home buyers
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First-home buyers worried about being shut out of the market by extra competition from a revival in interest by cashed-up investors can take heart from the fact that affordable real estate can still be found in some pockets of Sydney and Melbourne.
While property prices across both major capital cities in general continue to rise, some unit and apartment prices remain steady or, in some cases, are actually falling.
Unit and apartment prices in the Sydney CBD remain steady or, in some cases, are falling.
Lending restrictions to blame for undersupply: PIPA
By Bianca Dabu
10 May 2021
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1 minute read
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The current rental undersupply was years in the making – a result of the lending restrictions that were implemented in 2017, according to one property expert.
Many capital city markets have been hitting record-low vacancy rates, with the quick absorption of properties ultimately leading to a critical undersupply.
While this trend appears to have emerged as the property market rebounds from COVID-19, the pandemic may not be entirely to blame, Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos said.
According to Mr Koulizos, the lending restrictions that kicked off in March 2017 saw a significant decline in investor activity, which has resulted in a limited supply of rental stock coming into the market.
Department stores continue strong performance, lifting 8.5% in March
By Imogen Bailey | 11 May 2021
Department stores experienced a significant jump in March, with the Australian Bureau of Statistics (ABS) recording an 8.5% lift for the sector in the month.
Meanwhile, clothing, footwear and personal accessory retailing also saw a rise in March, lifting 5.4% ($128.6 million).
By industry subcategory, clothing retailing rose 5.6% ($89.1 million), while footwear and personal accessory retailing rose 5.0% ($39.5 million) in March.
Overall, the ABS recorded a 1.3% increase in retail turnover for March.
Compared to 2020, March 2021 rose 2.2%.
Total online sales for the month rose 2%, following a fall of 2.1% in February and a rise of 1.9% in January 2021.