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

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

React to this article
Latest news
Date Title
03:19p ALCOA : OPINION: Ashed in, a flutist turns to composition
03:19p BB&T : announces first-quarter 2015 earnings conference call
03:19p ERI CEO Calls Mishandled E-Waste a Threat to National Security, Cites Medium.com Article
03:18p ON DECK CAPITAL : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant (form 8-K)
03:18p EASTERN : Entry into a Material Definitive Agreement (form 8-K)
03:18p NETFLIX : Ellie Kemper is 'Unbreakable Kimmy Schmidt' in Tina Fey, Robert Carlock's new Netflix series
03:18p AMERICAN WATER WORKS : Pennsylvania American Water Releases Water Quality Reports for East Shore And West Shore Systems
03:18p AMERICAN WATER WORKS : Pennsylvania American Water Releases Water Quality Reports for Berwick Service Area
03:17p FREEDOM INNOVATIONS : Expands Irvine Facility to Accommodate Growth
03:16p Fitch Affirms Alicorp's IDRs at 'BBB'; Revises Outlook to Negative
Latest news
Advertisement
Hot News 
ISG : Shares Hit As It Swings To Loss, Launches Discounted Placing (ALLISS)
GLOBAL BIOENERGIES : reports first isobutene production from waste biomass
ELECTRO RENT : Announces Non-Renewal of Authorized Technology Partner Agreement with Keysight Technologies
FILTRONIC : CFO Replaces CEO As Full Year Revenue Outlook Worsens
PHYSIOMICS : Shares Surge As It Gets Contract With Merck
Most Read News
03/02 OPOWER : reports 4Q loss
11:50a QUANTUM GENOMICS : First patients recruited for Phase IIa trial of drug candidate QGC001
11:50a OIL & NATURAL GAS : Fadnavis commissions 4 support vessels into Navy
11:52a NORTECH SYSTEMS : to Report Fourth Quarter Results
11:52a REVL AC : Los Angeles developer makes 11th-hour offer to buy Revel Casino Hotel in Atlantic City
Most recommended articles
03:15p Oil up as Netanyahu blasts Iran in speech; Libyan forces fight
03:03pDJNUVASIVE : Court Overturns $102 Million Award to Medtronic--Update
03:02pDJCopper Prices Drop Ahead of Policy Meeting in China
02:54p Trades in Immunovaccine shares to be undone after hoax spurs 30 pct jump
02:51p Fiat Chrysler Canadian sales edge up in February, topping Ford
Dynamic quotes  
ON
| OFF