“The September result would be seen as a positive indicator by the RBA, which has been considering additional measures to curb lending to property investors, “Head of research at RP Data, Tim Lawless said.

 

The annual trend of capital growth has been trending lower and seen the housing market conditions remain very buoyant. If this condition will occur, it is a warning to take more action taken in order to have stable strategy. Economists expect the strong lift in approval to furnish new houses. If the supply will lift, it will help the house price growth. When the housing activity continues to going strong, it makes the backbone of Australia’s growth. When the residential construction strengthens, there will be a huge positive impact on the economy. Therefore, house values remain unchanged over September but housing construction is the best way to rein surging house prices.

http://www.theaustralian.com.au/business/property/house-prices-flat-for-september-as-rba-weighs-moves/story-fniz9vg9-1227076156722?nk=b86683605d4f71e7ea56d839dd87a284

 

 


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Despite of the rate of price growth slowed in the first quarter of 2014, Australia made it into the top 10 for the annual price growth. Australia is one of the strong house price growths in the world.

 

Based on the latest Knight Frank Global House Price Index puts Australia at seven in the world in terms of house growth in past 12 months. Australia recorded price growth of 10.9% and a big turnaround of housing market made the country to the top. Having low interest rate and strong activity in housing market are the evidences why Australia belong to top 10 countries of world’s best for property price growth.

http://www.perthnow.com.au/realestate/australia-ranks-among-the-worlds-best-for-property-price-growth/story-fnhlgp12-1226942722504


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According to the Master Builder’s (MBA) National Survey by building and Construction, “Increased building activity will not be triggered in the short term despite improvement in some key indicators, with investor confidence shoring up fundamentals in Aussie Property.  The outcomes of optimism in the property market are very real. This makes a great deal of sense when we consider homes are more affordable there and ill very soon need realistic opportunities to buy and o gain more confidence.

http://balita.ph/2013/10/21/underlying-confidence-in-australian-property-market-growing/


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According to Chamber of Commerce and Industry WA today released its quarterly outlook downgrading the state’s economic growth to 5.75% in 2013-14 from 65% previously forecast. Australia is mineral rich and mining resources are finite. The demand for raw materials has been a major factor in the Australian dollar strength.

Last July meeting of the Reserve Bank of Australia, Interest rates remain unchanged and this is one factor driven the currency’s strength from a stable economy. I think economy will have more sustainable growth over the longer term if the interest rate will continue to decrease, increasing incomes and strong population growth.

http://www.perthnow.com.au/news/western-australia/wa-economy-faces-slowdown-according-to-chamber-of-commerce-and-industry-wa/story-fnhocxo3-1226684571868


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Australian Residential Property Market have reported prices decline for the past months but it is pointing to activate a recovery of the market this 2013.

According to the RBA’s Board, “There were also signs the appetite for borrowing in household sector was picking up and the housing market generally appeared to be improving, it’s the effects of the most recent and earlier reductions in the cash rate worked their way through the economy”.

Australia Vacancy Rates have tightened and sales volumes are increasing. Low interest rate encourages demand to increase and the confidence remains strong despite of the rumors low pace economy. The mentioned factors are the key to the recovery and stabilization of the strong market. Residential Property market factors to increase because nowadays it is clearly in recovery.

http://www.apimagazine.com.au/api-online/news/2013/06/positive-outlook-for-housing-market-rba


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Based on what we can see in Australian Property Market, Australian market is considerably better and things are getting back to normal. Despite some ups and downs of our housing market, it didn’t collapsed instead struggling to be a better housing market. Based on the reports, Australia’s property market is showing positive signs of growth.

According to Comparison Site RateCity, “February 2013 saw the highest value of investment loans written since before the global downturn, with would-be landlords borrowing a total of $7.9 billion to fund rental property purchases.” The demand is strong and the supply is limited but still we have seen confident growth and sustainable prices. Low interest rates, RBA’s cut to the official rate and low mortgage rate is some reasons why our property market is heading back to normal.

http://www.coffscoastadvocate.com.au/news/residential-property-gets-upkick/1863373/


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Last Thursday, The Australian Bureau of Statistics releases labour force data for April, while the Housing Industry Association Trades report to March quarter is also due. The Australian market set to open higher because of the positive economic data. Last Wednesday, the market closed at its good level driven by US market and positive trade in China. Aside from those big cities, NAB announces also that Billabong is expected to provide details of a possible takeover.

Investor helps to heartened positive production and I think they are regaining confidence. Investors play a big role in the economy and they believe that economy is starting to get better. Anyhow, Australian economy is getting better gradually although there are tough times but still it will continue to grow and become more competitive.

http://www.perthnow.com.au/business/breaking-news/australian-market-set-to-open-higher/story-fnhrvfsf-1226638029826


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According to APM Senior Economist Dr. Andrew Wilson, “Looking ahead in 2013, activity will depend on the direction of local economies, as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies.” Australians are optimistic by nature and they help on expecting a better economy. Perth is the top performer and include as the most expensive house in the world. By this, it really helps to boost the economy because Perth is one of the states that lift Australian’s economy. Consumer confidence improves, lower interest rate, strong migrations are some factors combined to a better year for property. If the property market will boost next month, it means we will have a better economy because it is a sign of recovering Australia.

http://www.perthnow.com.au/news/western-australia/perth-dominates-latest-property-figures/story-e6frg13u-1226565474027


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Australia’s Central Bank cut the official interest rate last Tuesday, December 04, 2012 to 3.0%.  This is the low record rate release by Central Bank this year. Because of the interest rate cut, Australian dollar rise a bit. It will help the growth of the economy to sustain. It really helps also for the stabilization for the Economy. This is the good end for this year and a good start for 2013. We will expect a stable economy next year that makes property market booms and more competitive.

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1240967/1/.html




Australia consistently the second place for the world’s highest development index and has the lowest level of corruption. Australia’s economy had become two-speed, with the mining sector growing and other sectors. Australia’s economy performs well because consumer’s confidence is returning on the market and almost all latest figures showed a rise. Analysts had expected the gross Domestic Product to grow twice.

 

According to Australian Treasurer Wayne, “Australia is the strongest performing developed country bar none. Australia’s 22 million- strong population sits in a very sparsely populated country.” Asian Immigration has increased in Australia’s diversity especially in Melbourne, Sydney and Perth.

 


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Based on the statement of Reserve Bank of Australia Deputy Governor Philip Lowe in ADC Future Summit in Melbourne, “the central bank expects inflation to remain contained, but that the nation’s two-speed economy will continue with non-mining sectors logging behind the resources boom.” Actually, there are a lot of factors we need to consider in the stability of Australian Currency and one reason is the above-mentioned. Since December, this is the first time that Australian Dollar briefly fell. Australian dollar fell as low as 99.97US cents and this is the first lowest since December. The rate of inflation and the decision about the interest cash rate by 50 basis points are some factors to ease the monetary policy.


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Last April 18, 2012, International Monetary Fund officials in Washington (IMF) announced that “Australia has the strongest economy in the developed world and it expected to outperform all comers for at least the next two years.” The financial stability of Australia is gradually improving. IMF forecasts with the global economy expected to grow by 3.5 in 2012 and Australia’s unemployment rate remained low at 5.2%.

According to Treasurer, Wayne Swan, “With solid growth, low unemployment, contained inflation, strong public finances and a record pipeline of business investment, the Australia Economy is the standout performer of the developed world. Cutting Interest Rates really helps in budget surplus of the country, Cutting rates, solid growth and low unemployment are the factors of a strong economic fundamentals of a country. Therefore, IMF’s confirmed Australia leads the world because of strong economic fundamentals and Australia Economy is the standout performer because of these factors.

 


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According to the new daily house price index launched by RP Data and the Rismark through to the March 27, “Australian house prices are not falling, which makes a change from the deflating conditions that prevailed during much of 2011.”  The health of the market is the fact of first homebuyers and historically high 20% in January, as proportion of all loans approved and this was well above the 17.5% average in 2011 and better than long-run average since the ABS began collecting this data. It shows that homebuyers would start to act on the improvement in the purchasing power. Last January, home values declined but recovered these losses in February and March and the eight biggest Australia cities including Perth are, on average, unchanged. But despite all the factors that threatened the economy,  we are still the reasons to be optimistic because total returns real investors has probably changed due to more income and less capital growth..


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According the study conducted by Lloyds TSB for their International Global Housing Market Review, it shows that Australia is on the top 10 list with highest house price increase. Australia had the ninth fastest growing house prices, with increase of 76% between 2001 and 2011.Here are the top list countries in which house prices increase over the past decade.

          Country                                    Real house Price changes % 10year pa.

  1. India                                        14.4%
  2. Russia                                      12.0%
  3. South Africa                               10.1%
  4. Lituania                                     9.3%
  5. Hongkong                                  8.4%
  6. Bulgaria                                     7.5%
  7. France                                       6.2%
  8. New Zealand                               6.0%
  9. Australia                                    5.8%
  10. Norway                                       5.5%

Even Australia are over inflated and house prices slumped for almost 6% last year but Australia are on the top 10 worldwide that house prices increase. It means Australian Economy is growing because housing market has risen fastest in countries with higher GDP and has boost economy.


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According to Westpac Senior Economist Matthew Hassan, “the growth towards the end of 2011 particularly in November was the weakest seen in more than 10 years.” The Westpac-Melbourne Institute posted an annualized growth rate of 2.6% in January in which the report shows the Australian Economy will continue to grow at a below-trend pace.

 

The report indicates the situation had improved slightly but growth still remains weak. No interest rate cut, manufacturing prices and increase in unemployment are the components driven to slowdown the economy growth. With our expectation to deteriorate all of those, rate cut these coming months is the best expectation because the market will more comfortable and the cut may assist the economy to grow.


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According to the latest Reserve Bank of Australia (RBA) monetary policy meeting showed, “Growth in the Australian economy was not as strong in 2011 as experts had predicted. Last December quarter, inflation stood at 0.5%, which was broadly in line with the expectations. The main source of growth in 2011/12 is expected to be a 16%/year surge in private business investment and 3.5%/year growth in household consumption. A number of factors contributed to the less-than-expected 2.75% growth seen and different industries adjusted to high trading terms and exchange rate.


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According to HSBC Chief Economist Paul Bloxham, Australia (RBA) will make further readjustments to interest rates and even if these are not passed on to the Aussie on the street by the major banks, the RBA will keep the cast rate on hole at 3.75%. The Australian economy is in a strong position and the expected interest rate cuts to the following months will help to boost the retail and housing sectors. One of the sectors that make Australian economy become strong is the ongoing mining boom that helps to stand the country in a good stead. Analysts had predicted that RBA would be influence by all sectors and the economy in which RBA has the firepower to use monetary policy. Because of the boost economy, the country will get ready for the future.


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According to Commsec’s Chief Economist Craig James, “West Australia is clearly the nation’s strongest economy and sits in a group by itself.” CommSec analyses the states through eight indicators namely economy growth, retail spending, equipment investment, unemployment, construction word done, population growth, housing finance and dwelling commencements. These are the indicators that CommSec basing their analysis in one state of the country. The WA Economy has been the significant out-performance throughout the year and still the main weakness is the residential sector that makes home price fall. Among all the states in WA, Victoria is the strongest in the housing sector while the South Australia economy performs solidly on overall economic growth and construction work. The Northern Territory continues to outperform with low unemployment and housing finance are below long -term average and underperforming other states and territories.




Based on the latest ABS figures show that GDP, in generally adjusted volume terms, grew 1.0% in the September quarter 2011, after a revised increase of 1.4% in the June quarter. The GDP growth indicates 2.7% increase in the terms of trade and the Real gross domestic income grew 1.6% for the quarter. The Australian Bureau of statistics reported that on an annual measure, the economy expanded by 2.5%.

According to Treasurer Wayne Swan, “Slower growth would mean less government revenue but the government remained determined to bring the budget back to surplus in 2012/2013 as planned.” He also expects the economy will still be growing at trend in the current financial year when he hands down Treasury’s latest economic forecasts with the mid-year budget review. Stable monetary exchange and the cuts rates last November and also having cut rates next year will be sign that economy still solid and grow better. Most sectors are struggling or going backwards by mining investment remains the backbone of growth. Among the states, WA led on the way of State final demand and the final demanded jumped by 8.4%, contributing 1.1% points of the 2.1% increase in National final demand. Investors has nothing to worry about what they are invested because next year and the following years, the economy will become stronger and will become more stable economy.




According to survey released
last Wednesday, November 16, 2011, “The Australian economy is growing at an
annual pace close to the projected long-term trend. The survey was by Westpac Banking
Corporation and the Melbourne Institute. CommSec’s State Report believed that
Western Australian have the strongest performing economy within Australia. Despite
growth slowing due to the global financial crisis, Australia was one of the few
advanced economics to escape recession. Australia can fully benefit from improved
terms of trade because of the mining boom. Tax reform also plays a key role in stepping
the right direction to reduce the company tax rate.

The NSW Treasurer, the Hon.
Mike Baird MP, went on to state; “Conditions in some NSW industries exposed to
the high Australian dollar are subdued, particularly in tourism and
manufacturing. The NSW retail sector is also soft reflecting increased
household caution as evidenced by the rising saving ratio and recently
declining consumer confidence. There is a significant divergence between
sectors, though, with strong conditions currently in the NSW mining, farm,
business services and household services sectors.” They are expected to remain
at a high level over the next two years as a result of elevated export prices
and subdued import prices. Mining boom also could permanently raise household
incomes in Australia.