Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Australia Property Market Shows Recovery Signs

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/04/2013 | 02:45am CEST

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
07:55p FITCH : U.S. Credit Card ABS Chargeoffs Drifting Up to 'Normal'
07:55pDJUNITED PARCEL SERVICE : UPS Profits Rise on E-Commerce Growth -- Update
07:55p NEOVASC : Glancy Prongay & Murray Announces the Filing of a Securities Class Action on Behalf of Neovasc Inc. Investors and Encourages Investors to Contact the Firm
07:54p ENTERGY : Declares Dividend
07:53p TEXAS A&M AGRILIFE EXTENSION SERVICE : Leader in Texas A&M AgriLife plant breeding process dies
07:53p TEXAS A&M AGRILIFE RESEARCH : Leader in Texas A&M AgriLife plant breeding process dies
07:53p MINISTRY OF ECONOMY AND FINANCE OF MOROCCO : Quoting of Treasury bonds on electronic trading platform E-Bond Morocco (29/07/2016)
07:53p U S DEPARTMENT OF ENERGY : How Does Fusion Energy Work?
07:53p FULLER SMITH & TURNER : Treasury Shares
07:53p NEW JERSEY SENATE REPUBLICANS : Democrats Block Beck’s Effort to Remove Gas Tax from Legislation
Latest news
Advertisement
Hot News 
2.08%SABMILLER : China Approves AB InBev Deal for SABMiller -- Update
4.60%Alphabet posts strong revenue on video market, stock surges
1.86%AVATION : Acquires Aircraft
-4.00%CASINO GUICHARD : Groupe Casino Profit Leaps on Asset Sales
5.99%NEWELL BRANDS : Earnings Top Views
Most Read News
01:26p Oil steadies but U.S. crude faces biggest monthly loss in a year
07/28 OAKLAND COUNTY MI : Patterson Says "No" to Regional Transit Plan that Bills Entire County but Excludes Services from 40 Oakland Communities
07/28 Microsoft to cut 2,850 more jobs
Most recommended articles
01:55pDJUNITED PARCEL SERVICE : UPS Profits Rise on E-Commerce Growth -- Update
01:41p EXCLUSIVE : California regulator says testing to begin on Volkswagen diesel fix
01:41p SABMiller backs AB InBev offer for biggest-ever consumer takeover
01:34p SAMSUNG ELECTRONICS : Apple asks U.S. Supreme Court to rule against Samsung over patents
01:33pDJMERCK : Revenue Rises on Cancer, Hepatitis Treatments -- Update