hotspotting

$40bil LNG investment looms for Qld

Mon, 16 Nov 2009 21:26:29 +1000

The Queensland Government has moved to ensure Queensland’s future domestic gas supply, while providing industry with the certainty it needs to kick off its $40 billion LNG investment.

The Government has decided to set aside future gas fields for future domestic supply if needed and rejected an option to require a percentage of gas from all fields to go to domestic supply. “We want to create a business environment that allows the LNG proponents, which are contemplating more than $40 billion of investment, the opportunity to proceed and develop their projects in Queensland,” Premier Anna Bligh says. “It’s a win for the people of Queensland in the 18,000 jobs the industry is expected to create.

The eight LNG projects in the pipeline are:
• Gladstone Liquefied Natural Gas Project (Santos Ltd/ Petronas)
• Queensland Curtis LNG Project ( QGC a BG Group Company)
• Australia Pacific LNG Project (ConocoPhillips/ Origin Energy)
• Gladstone LNG Project (LNG Ltd/ Arrow)
• Sojitz Corporation
• Shell Australia LNG (Shell CSG Australia Pty Ltd)
• Southern Cross LNG
• Energy World Corporation.

Brisbane unit sales up 31%

Thu, 12 Nov 2009 21:55:20 +1000

A 31% rise in new apartment sales in inner Brisbane has coincided with a $70,000 price increase, according to Colliers International.

There were 273 new unit sales in the September Quarter - up from the June Quarter’s 209 sales.

Colliers’ Brisbane Apartment Report reported the weighted average sale price was $636,190.

About $170 million has changed hands in new residential apartment deals in Brisbane in recent months.

Home loans up strongly in Sept Qtr

Tue, 10 Nov 2009 13:17:44 +1000

A home construction boom has been predicted after record numbers took out mortgages in September.

Almost 50,000 Australians took out mortgages for purposes other than refinancing, a seasonally adjusted record. About 7,600 were construction loans, the highest in 15 years.

The latest Australian Bureau of Statistics housing finance figures reveal a 73% increase in demand for housing finance from first-time buyers in the September quarter, compared to the same time last year.

Finance approvals for other home buyers increased 17% during the same period.

Loans for the construction or purchase of new homes grew 5.5% for the month, continuing the trend of increases in 12 of the past 13 months.

September quarter construction lending increased 67% compared with levels 12 months ago.

According to mortgage brokers Mortgage Choice, the results show the housing market is steadily improving.

Fixed-rate loans rise after RBA increase

Tue, 27 Oct 2009 20:13:13 +1000

There has been a spike in fixed-rate home loan applications since the interest rate rise earlier this month, according to financial comparison website RateCity.

Fixed home loan applications at www.ratecity.com.au jumped 41% in the week after the official cash rate moved 25 basis points to 3.25%, compared to the previous week.

“This shows there are many Australians out there who are paying a significant premium to fix their home loan rather than saving potentially thousands by comparing rates online,” said Damian Smith, RateCity’s CEO.

For the week ending October 12, 2009, fixed-rate home loan applications made up 22% of all home loan applications on RateCity, compared to only 13% percent during the prior seven days. RateCity also found that fixed loan applications were up 24% for the week ending October 19, compared to the week before the RBA rate rise.

Vic building continues to rise

Mon, 05 Oct 2009 10:26:58 +1000

Victoria’s building industry has grown for the second consecutive month, with significant growth in the value of building permits in most regions of the state.

Building Commissioner Tony Arnel says the value of permits issued in August 2009 totalled $1.9 billion, a 12% increase from $1.7 billion in August 2008.

“All regions except Inner Melbourne and Gippsland experienced growth, with rural areas the strongest. North West (up 104%), North Central (94%), South West (50%) and North East (46%) all grew. Total rural building permits issued grew 52%,” Arnel says.

Melbourne vacancy 1.4% - or is it?

Wed, 30 Sep 2009 19:26:00 +1000

The REIV says Melbourne’s residential vacancy rate rose slightly in August to 1.4%, compared with 1.2% in July. However, data from independent sources suggests the vacancy rates are considerably higher.

The institute says vacancy rates in Melbourne have remained between 1.2% and 1.4% for over 12 months. “The last time we recorded a vacancy rate of over 2% was in December 2005,” it says.

The REIV says the vacancy rate in the inner suburbs has increased from 1.1% to 1.5% but in the outer suburbs there was a tightening from 0.9% to 0.7%.

The claimed vacancy for the inner ring suburbs is particularly in dispute. Data from sqmresearch.com.au suggests many of the postcodes of inner Melbourne have vacancy rates above 4%, with many having vacancies in the 7-9% range. This is confirmed by anecdotal evidence from property professionals in the inner suburbs.

Adelaide vacancies tighten to 1.3%

Tue, 29 Sep 2009 18:30:04 +1000

Adelaide’s vacancy rate tightened to 1.3% in August despite reports of a quieter rental market, the Real Estate Institute of South Australia says.

Anecdotal evidence from property managers suggests the falling vacancy rate can be attributed to a smaller number of properties coming onto the market.

No section of the market had a vacancy as high as 2%. The central City market had a vacancy of only 0.44%, while the highest vacancy was in the eastern suburbs (1.7%).

$43bil Gorgon officially approved

Wed, 16 Sep 2009 22:00:08 +1000

The largest single resources project in Australian history has been officially approved.

Gorgon gas project partners Chevron, Shell and ExxonMobil have announced they have made the final investment decision to build the first phase of the Western Australian development at a cost of $43 billion.

The decision was expected, given that the project partners have already handed out contracts worth many billions of dollars for various components of the development.

The project is expected to create 10,000 jobs during peak construction, with an estimated $33 billion to be spent on Australian goods and services.

Chevron says the Gorgon gas field has a resource of 40 trillion cubic feet of natural gas, enough to power a city of one million people for 800 years.

Economic growth again confounds economists

Wed, 02 Sep 2009 18:01:56 +1000

The Australian economy grew 0.6% in the June Quarter, confirming that the nation has avoided a recession.

The growth rate was three times stronger than that predicted by economists – who have, yet again, got it spectacularly wrong by under-estimating the Australian economy. The concensus forecast among economists was 0.2% growth in the June Quarter.

The June Quarter performance follows 0.4% growth in the March Quarter.

Federal Treasurer Wayne Swan says the national accounts show that Australia has been the best-performing advanced economy in the world. The economy remains weak but is very resilient, he says.

Consumer spending rose 0.8% in the June Quarter while exports improved 1%.

Stand by now while the national media works hard to find a negative slant to put on the nation’s strong economic performance. This, predictably, will be speculation that it will lead to interest rate rises.

Building approvals up 7.7% in July

Tue, 01 Sep 2009 20:36:28 +1000

Residential building approvals rose 7.7% in July, following a 9.9% rise in June. Approvals for private homes rose for the 7th consecutive month, with 12,048 new homes approved in July, according to the Australian Bureau of Statistics.

The July figures included a 35% increase in approvals for apartments.

Economists had predicted a 3.3% increase in July, reinforcing their unerring ability to under-estimate everthing that moves in the Australian economy.

Survey reveals importance of The Shed

Tue, 01 Sep 2009 12:40:45 +1000

Half of Australian men say women don’t understand the importance of the Great Aussie Shed, the inaugural Bankwest “Shed Index” has found.

The latest Bankwest Social Indicator Report finds that the average Australian shed and its contents are insured for $15,900, while one in three people use their shed as a “dumping ground” for junk.

The Shed Index found – unsurprisingly – that 90% of primary shed users are men. Over half are highly territorial and declare the shed “theirs”.

The report also reveals the humble shed might be a shot in the arm for relationships –three out of four men say their partner doesn’t mind ‘”shed time” while 12% say it’s actually good for the relationship.

Average “shed time” was two hours or less per week for 70% of men, while a clutch of diehard shed dwellers (11%) spent upwards of five hours per week.

Nearly 20% of shed owners are partial to “hanging out” in their shed – 36% have installed a stereo while one in four has a bar fridge.

SA market shows recovery signs

Tue, 25 Aug 2009 23:16:40 +1000

South Australia’s property market continues to show resilience as consumer confidence rises and house prices hold their value, according to the Real Estate Institute of South Australia (REISA).

The release of the REISA/Bendigo Bank Market Update for the June quarter suggests the beginning of a recovery in the SA market.

“There has been an increase in consumer activity, with the number of transactions up 10% from the March quarter,” REISA President Robin Turner said. “Median prices in all areas of the market have generally shown signs of improvement.”

The state median house price rose 2.33% in the June Quarter, but remains 1.5% below the level of a year ago. The Adelaide median price showed a 0.85% rise in the Quarter.

The rental market remains tight, with all sectors of the metropolitan market having vacancy rates below 1.6%. Adelaide’s vacancy rate has not exceeded 2% since mid-2005.

Stay-at-home Gen Y costs plenty

Mon, 24 Aug 2009 13:07:52 +1000

Generation Y is the most costly generation to raise in history, costing parents $6,000 a year on top of the $200,000 already spent to raise each of them from birth, new research by BankWest shows.

The Social Indicator Series Report shows just how expensive the best-educated and tech-savvy generation in history has been for Baby Boomer parents.

It also reveals that 63% of three Gen Ys still living at home don’t contribute to household bills while the average rent paid by Gen Ys to their parents in 2009 is only $70.

The BankWest Gen Ys Still at Home survey shows that Gen Ys who continue living with their parents cost them up to $42,000 more than Gen Xers who left home on average at 18 or 19. Many Gen Ys, on the other hand, are still living at home at 25.

Those who do contribute to household bills tip in an average $44 to the family kitty, while nearly 50% of parents think their Gen Y kids take them for granted.

While the latest Bankwest report clearly highlights the on-going financial burden posed by still at home Gen Y’s, it also shows that many Baby Boomer parents are more than happy to have their adult kids live with them.

Jobless rate steady at 5.8%

Thu, 06 Aug 2009 14:29:25 +1000

It appears increasingly unlikely that unemployment which reach the pessimistic Federal Budget forecast of 8.5%.

The national unemployment rate was unchanged in July, remaining at the 5.8% level reached in June, according to the Australian Bureau of Statistics. Once again, this was a significantly better result than that predicted by economists, who forecast a jobless rate of 6.0% for July.

One reason that employment levels is not falling as predicted is the shift by some from full-time to part-time employment.

No change to official interest rate

Tue, 04 Aug 2009 15:08:17 +1000

The Reserve Bank of Australia has left interest rates unchanged for the fifth month in a row. It decided today to leave the official cash rate at a 49-year low of 3%.

This was in line with most expectations, with growing signs of recovery in the Australian economy.

Dwelling approvals up 9% in June

Thu, 30 Jul 2009 13:05:11 +1000

Approvals for new houses and units rose 9.3% in June, compared to May, continuing the steady rise in approvals since the beginning of the year.

Approvals, however, remain 14% lower than June 2008.

Seasonally-adjusted, approvals rose 4.9% to 8,385 houses, while approvals for other dwellings were up 28% to 2,156.

The total value of new residential buildings approved rose 36% in June.

Adelaide rent market still tight

Thu, 23 Jul 2009 22:16:24 +1000

The rental market in Adelaide has tightened with the vacancy rate dropping to 1.3%, according to the Real Estate Institute of South Australia (REISA).

REISA President Robin Turner says Adelaide’s vacancy rate has not exceeded 2% since June 2005.

“Anecdotal evidence from property managers suggests properties under $250/week are in high demand, while properties above $350/week are attracting minimal inquiry,” says Turner.

Adelaide’s median weekly rent for houses now sits at $285, up from $270 a year ago. The median weekly rental for units increased to $250, a jump of $25 over the past year.

All sectors of the city rental market reported vacancies below 2%, with the Inner City the lowest at 0.9%.

Inflation drops to 1.5%

Wed, 22 Jul 2009 13:17:31 +1000

The annual inflation rate has dropped from 2.5% in the March Quarter to 1.5% in the June Quarter, according to figures out today.

This is the lowest level in a decade and compares with a peak of 5% in the year to September 2008.

The result is in line with economists’ forecasts, which is a highly newsworthy event in itself as they seldom get these things right.

SMSFs need to beware "death duty"

Mon, 20 Jul 2009 15:39:00 +1000

Around 2,500 Self-Managed Super Funds (SMSFs) are being set up every month with an average balance of $454,000, according to the Self-Managed Super Fund Professionals’ Association of Australia.

But care is needed. Lifeplan Funds Management says SMSF owners may unwittingly saddle their beneficiaries with an unexpected tax liability of tens of thousands of dollars. Alison Massey of Lifeplan says many investors and their advisers are unaware of this “death duty in disguise”.

“There is a misconception that only income is taxed, but the capital value of the entire death benefit paid to the beneficiary may be subject to tax,” she says.

Those most affected are SMSFs that have reached the pension phase of paying out funds to support fund members. While SMSFs are exempt from capital gains tax, these exemptions immediately cease when the last member in the fund dies.

“Super is not designed for inter-generational wealth transfer and investors and their advisers should consider the implications of CGT applying to funds in a SMSF,” Massey says.

Until now, a testamentary trust has been a way investors have tackled this problem, adding complexity and expense to estate planning. Ms Massey says that Lifeplan has created a structure that eliminates the surprise “death duty” that applies to funds transferred to non-dependents from a SMSF.

Commercial lending up in May

Mon, 13 Jul 2009 12:37:34 +1000

Commercial finance commitments rose 4.0% to $28.3 billion in May, according to the latest figures from the Australian Bureau of Statistics.

As previously announced, housing finance for owner-occupation rose 2.3% to $17.05 billion.

Personal finance commitments, seasonally adjusted, fell 2.9% to $6.03 billion in May, the ABS says.