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APRA Warns Albanese On House Prices

The regulatory body’s government briefing wary of a rapid shift in the economic outlook.

By Kanebridge News
Thu, Jul 28, 2022Grey Clock < 1 min

With further steep rate rises likely, and a number of over-leveraged households on the brnk of financial distress, property prices will fall according to the Autralian Prudential Regulation Authority’s briefing to the Federal government.

In its May brief, the agency that monitors the health of the banking system warned of a rapid shift in the economic outlook.

“Inflationary pressures and increases in interest rates will increase the cost of finance for business and housing,” the briefing said.

“More broadly, frequent natural disasters, increasing geopolitical tensions and cyber threats, and the lingering impact of COVID-19 are creating volatility in financial markets, increasing cost pressures for all industries and heightening risks in the financial system.”

The briefing also spoke of risks in the nation’s now $10 trillion housing market and said households had become increasingly leveraged due to years of historically low-interest rates.

The brief went on the describe the housing markets as “cyclical”, with interest rate increases placing vulnerable households in financial distress.

“The faster-than-expected emergence of inflationary pressures and a rising interest rate environment is likely to place some strain on household balance sheets and place a number of households in financial distress.”

Further, the body suggested the rate rise will impact housing prices stating: “More generally, high interest rates will reduce borrowing capacity, increasing the likelihood of a decline in Australian housing prices”.

However, the document was optimistic in its assessment of the Australian economy’s ability to handle the stress of both inflation and rising interest rates and is keen to closely monitor the lending standards ongoing.

”APRA will continue to actively monitor lending standards and evolving risks in housing markets and review its macroprudential response in consultation with [Council of Financial Regulators] agencies.”

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The actor nabbed a roughly 436sqm spread in a Jean Nouvel-designed tower in the city’s Chelsea neighbourhood.

By Katherine Clarke
Wed, Aug 10, 2022 < 1 min

Actor Hugh Jackman has paid approx. $30.37 million for a penthouse in New York’s Chelsea neighborhood, according to public records and a person familiar with the transaction.

Records show the condo unit last traded in 2012 for US$19.4 million. The penthouse had been on and off the market since October 2021 and was initially priced at US$25 million.

The sellers are Daniel Fischel and Sylvia Neil. Mr. Fischel is president of Chicago-based global economic consulting company Compass Lexecon and a former dean of the University of Chicago Law School. Ms. Neil was an associate dean at the school. A call to Mr. Fischel’s office wasn’t immediately returned.

The roughly 435sqm, four-bedroom unit is located in a condominium designed by the architect Jean Nouvel, according to the listing with Noble Black of Douglas Elliman. The penthouse has roughly 14-foot-high floor-to-ceiling windows and about 343sqm of outdoor space, including a large roof terrace divided into dining and lounging areas. The apartment has views of the Hudson River as well as the downtown and Midtown skylines, according to the listing.

Amenities at the 57-unit building include a lap pool, fitness center and screening room.

A spokesperson for Mr. Jackman couldn’t immediately be reached for comment.

The purchase comes as Mr. Jackman and his wife, Deborra-Lee Furness, recently listed their apartment at a Richard Meier-designed tower on nearby Perry Street for $38.9 million. That unit is listed by Deborah Grubman, David Adler and Paul Albano of the Corcoran Group.

Mr. Jackman has starred in films such as “The Wolverine,” “X-Men” and “The Greatest Showman.” He is currently starring in “The Music Man” on Broadway.

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication:  August 9, 2022.