UBS: Australia’s Housing Boom Is ‘Officially Over’

Melbourne-PropertyThe housing boom that has seen Australian home prices more than double since the turn of the century is “officially over,” after data showed prices now flatlining, UBS Group AG said.

National house prices were unchanged in October from September, while annual growth has slowed to 7 percent from more than 10 percent as recently as July, CoreLogic data released Wednesday showed. “There is now a persistent and sharp slowdown unfolding,” UBS economists led by George Tharenou said in a report. Learn more

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Property Jitters

UK PropertySame old topic but Jeromine Bertrand (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers thought it was time to revisit UK property and explain why, despite the negative headlines in the press since the Brexit vote, they’re happy to be contrarian at Momentum.

In an environment where most asset classes are expensive and government bond yields are close to all-time lows, they believe that UK Real Estate is relatively attractive and provides good diversification benefits, hence deserving of a place in their multi-asset portfolios. Click here to learn more.

Weekly Market Update

News this past week

  • Abe’s coalition wins a landslide victory in Japanese elections
  • US payrolls show 287,000 jobs created in June
  • Chinese inflation slows
  • Health of Italian banking sector of increasing concern
  • Government bond yields continue to decline

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‘Panic’ Brexit Withdrawals Freeze Seven UK Property Funds, Three Slash Value of Property Assets

UK Commerical Property PanicIn a stark flashback to the catalytic event that ultimately brought down Bear Stearns in 2008, and subsequently unleashed the greatest financial crisis in history, earlier this week it was reported that Standard Life, has been forced to stop retail investors selling out of one of the UK’s largest property funds for at least 28 days after rapid cash outflows were sparked by fears over falling real estate values.

As of Thursday, seven UK property funds have now frozen assets and suspended redemptions, which has so far seen over half of the GBP25billion in UK property sector suspend trading including such names as M&G Investments, Standard Life, Aviva, Henderson, Canada Life and Threadneedle.

UK’s asset management giant Aberdeen has not only halted redemption requests, but triggered a 17% cut to its asset values for anyone who wants to withdraw their money. Legal & General and F&C Investments have also cut the value of their UK property funds, as the industry seeks to stem a tide of redemption requests

Do you hold commercial property in your portfolio? Have you recently reviewed your portfolio in light of the current market?

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Weekly Market Update

News this past week

  • Poor week for developed market equities
  • European government bond yields at record lows
  • Sterling volatility peaks
  • Mixed Eurozone production data
  • Chinese trade surplus increases once more

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Property Market ‘Hits Ground Running’ in 2016 as UK House Prices Accelerate

 

 

UK property asking prices have “hit the ground running”, reaching an all-time record high of almost £300,000, new data suggests.

The average house price reached £299,287 after rising 2.9% over the month. The figure is an increase of £8,324 or 2.9% from the average asking price in January, and is £2,738 above the previous all-time high set in October 2015.

The biggest increases were in London, where the average asking price has risen by 10.5% over the last year, to £643,843, and in the East, where it rose 10.7% to £321,630.

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