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
3m ago G 20 OF TWENTY FINANCE MINISTERS AND CENTR : G20 Special Representative visits the UN and Caribbean
7m ago NETZ : Out & About calendar, Aug. 1-7
7m ago Business as unusual for sanguine Argentines in default deja vu
7m agoDJChina July Official Manufacturing PMI 51.7 Versus 51.4 Forecast
9m ago SINGAPORE POST : Acquisition of 75% of share capital of The Store House Operating Co., Limited
9m ago MFA MANAGED FUNDS ASSOCIATION : Commodity Hedge Funds Continue Strong Performance
9m ago HANSEN TECHNOLOGIES : Operating Results Upgrade
13m ago VMTURBO : Posts 16th Consecutive Quarter of Record Revenue
15m ago IOWA CORN GROWERS ASSOCIATION : Announces Director Election Results
15m ago BESRA GOLD : John Glen is Besra’s new Chief Financial Officer
Latest news
Advertisement
Hot News 
ARDEN PARTNERS : Posts Loss As Fee Income Hit By Two Pulled Deals
AFREN : Oil Explorer Afren Suspends Top Executives
EHEALTH : PPACA calendar slams broker's medical sales
HYDER CONSULTING : Agrees To Be Acquired by Arcadis At 39% Premium
NETGEM : Results of the 1st half of 2014
Most Read News
2h ago TESLA MOTORS : expects to boost 2015 output to more than 60,000
2h ago PANASONIC : Tesla expects to boost 2015 output to more than 60,000
2h ago PUBLIC STORAGE : Reports Results for the Quarter Ended June 30, 2014
2h ago France's Iliad challenges Sprint for control of T-Mobile
2h ago MOODY : upgrades Suncor to A3
Most recommended articles
20h agoDJMARKET SNAPSHOT : U.S. Stocks: Futures Drop On Jobless Claims
7m ago Business as unusual for sanguine Argentines in default deja vu
7m agoDJChina July Official Manufacturing PMI 51.7 Versus 51.4 Forecast
27m ago China July official PMI rises to 51.7 from 51 in June
1h ago Asia taken aback by Wall St. swoon, pins hopes on China
Dynamic quotes  
ON
| OFF