Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Australia Property Market Shows Recovery Signs

02/03/2013 | 08:45pm US/Eastern
Recommend:
0

SYDNEY--Australia's property market is showing signs of springing to life this year, with the number of houses listed for sale dropping in January, according to research tracking housing market trends nationally.

Total residential property listings across the country fell 1.9% in January from December, a report by SQM Research showed, an indication demand in the sector is starting to re-build. The report adds to a wave of recent data fanning talk of a recovery in the housing sector this year that would end years of weak activity, falling prices and weak construction.

Research by RP Data-Rismark last week showed that capital-city house prices rose 1.2% in January from December and 1.8% on year. A Housing Industry Association survey also published last week showed a 6.6% jump in new home sales in December.

"This is potentially a sign that more stock is beginning to be absorbed, and that the property sales market may be starting to pick up in certain localities, particularly Sydney and Darwin," SQM Research said about its survey.

The data boosts evidence that aggressive interest-rate cuts last year by the central bank are finally beginning to lift non-mining parts of the economy hardest hit by the cooling of a decade-long mining boom.

"There are a number of signals now the market is gaining some traction," said Louis Christopher, managing director of SQM Research. "I think the interest-rate cuts are now working and that a housing recovery is now occurring."

Still, a government report Monday showed that the number of home-building permits fell 4.4% in December from November, highlighting the need for caution in interpreting the latest surveys.

Annette Beacher, head of Asia-Pacific Research at TD Securities in Singapore said the fall in housing permits may be a short-term blip that distracts from the bigger picture of a housing rebound.

"Looking through the noise, the housing sector is actually slowly healing and without an accompanying pickup in household credit," she said.

The Reserve Bank of Australia, or RBA, holds its first policy meeting this year on Tuesday, with economists and markets pricing in a very low probability of a further immediate cut in interest rates.

The cash rate is at 3.0%, down from 4.75% in November 2011, at matching the low reached in the aftermath of the global financial crisis. The RBA delivered 50 basis points of those cuts in the fourth quarter.

"Low listings, and thus limited supply of housing, combined with rising demand on the back of recent RBA rate cuts are a recipe for rising house prices and that is exactly what we are seeing," said Paul Bloxham, chief economist at HSBC, Australia.

-Write to James Glynn at james.glynn@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Recommend :
0
React to this article
Latest news
Date Title
1m ago NAK SEALING TECHNOLOGIES : News - Product Information of WEAR-PRO Shaft Repair Sleeve
6m ago ENSIGN ENERGY SERVICES : resolves complaint regarding historical stock option pricing
7m ago New US-Spanish firm targets rich mobile ad market
7m ago GOOGLE : South African Elections Hub launched online
7m ago FORD MOTOR : First Ford dealership to use new cooling system
7m ago SHOPRITE : Computicket launches online deals site
7m ago BARCLAYS AFRICA : Absa supports Orlando Children's Home
7m ago SABMILLER : Africa sales slow growth
7m ago MTY NV : Dutch group ASML slashes forecast
8m ago IRC : 2014 First Quarter Trading Update Conference Call Advisory
Latest news
Advertisement
Hot News 
INDEPENDENT BANK : Entry into a Material Definitive Agreement, Completion of Acquisition or Disposition of Assets, Change in Directors or Principal Officers (form 8-K)
HAYNES PUBLISHING : Third Quarter Hit By Us Inventory Returns, Weak UK
SPACEANDPEOPLE : Shares Slide As It Lowers 2014 Forecast
BLUR : Shares In Blur Group Plummet Due To Delayed Revenue Recognition
LDK SOLAR : Provides Additional Information on its Request for Review of NYSE Regulation's Decision to Suspend Trading and Commence Delisting Procedures
Most Read News
2h ago WALT DISNEY : Disney sees operating income growth at cable networks
2h ago LULULEMON ATHLETICA : CEO looks beyond yoga wear for growth
2h ago BLACKSTONE : Retailer Michaels Stores confirms payment card data breach
2h ago APPLE : Pixel Film Studios, Apple FCPX Effects Developer Announced the Release of ProSilent, Professional Silent Film Effects.
2h ago PNC FINANCIAL SERVICES : The Mission Continues, PNC Bank to Host Community Service Project to Refurbish Grace Hill Early Childhood Development Center
Most recommended articles
12h ago U.S. shares seen opening lower as tech giants stumble
9h ago Financials bolster FTSE after reassuring U.S. earnings
11h ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
04/10DJCarrefour Sales Grow at Fastest Pace in Two Years
22m ago EUR/USD Technical Analysis – Indecision Continues Near 1.38
Dynamic quotes  
ON
| OFF