Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,516,817 (-0.06%)       Melbourne $971,359 (-1.00%)       Brisbane $819,969 (+2.77%)       Adelaide $731,547 (+1.72%)       Perth $621,459 (+0.34%)       Hobart $751,359 (-0.46%)       Darwin $633,554 (-4.02%)       Canberra $1,005,229 (+2.77%)       National $966,406 (+0.40%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $700,089 (-0.30%)       Melbourne $470,277 (-0.26%)       Brisbane $404,718 (+2.58%)       Adelaide $332,602 (+1.44%)       Perth $348,181 (-0.09%)       Hobart $551,005 (+2.68%)       Darwin $355,689 (-3.55%)       Canberra $477,440 (+4.12%)       National $484,891 (+0.89%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 8,451 (-507)       Melbourne 12,654 (-279)       Brisbane 9,158 (+847)       Adelaide 2,765 (-40)       Perth 9,974 (+39)       Hobart 595 (+36)       Darwin 247 (-1)       Canberra 666 (-49)       National 44,510 (+46)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,895 (+164)       Melbourne 8,149 (-24)       Brisbane 2,260 (+33)       Adelaide 649 (+5)       Perth 2,489 (-21)       Hobart 101 (-3)           Canberra 430 (+13)       National 23,351 (+167)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $630 $0       Melbourne $470 $0       Brisbane $460 ($0)       Adelaide $495 (+$5)       Perth $500 ($0)       Hobart $550 $0       Darwin $600 ($0)       Canberra $700 ($0)       National $562 (+$)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $540 (+$10)       Melbourne $410 (+$2)       Brisbane $460 (+$10)       Adelaide $380 $0       Perth $440 (-$10)       Hobart $450 $0       Darwin $500 ($0)       Canberra $550 $0       National $473 (+$2)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,470 (-50)       Melbourne 7,404 (-70)       Brisbane 1,986 (-122)       Adelaide 875 (-29)       Perth 1,838 (-38)       Hobart 254 (+18)       Darwin 70 (-3)       Canberra 388 (+17)       National 18,285 (-277)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 10,652 (+58)       Melbourne 9,001 (-180)       Brisbane 1,567Brisbane 1,679 (-62)       Adelaide 403 (+4)       Perth 1,050 (-21)       Hobart 87 (+1)       Darwin 131 (-10)       Canberra 453 (+43)       National 23,344 (-167)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.16% (↑)      Melbourne 2.52% (↑)        Brisbane 2.92% (↓)       Adelaide 3.52% (↓)       Perth 4.18% (↓)     Hobart 3.81% (↑)      Darwin 4.92% (↑)        Canberra 3.62% (↓)       National 3.03% (↓)            UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 4.01% (↑)      Melbourne 4.53% (↑)        Brisbane 5.91% (↓)       Adelaide 5.94% (↓)       Perth 6.57% (↓)       Hobart 4.25% (↓)     Darwin 7.31% (↑)        Canberra 5.99% (↓)       National 5.07% (↓)            HOUSE RENTAL VACANCY RATES AND TREND         Sydney 1.5% (↓)       Melbourne 1.9% (↓)       Brisbane 0.6% (↓)       Adelaide 0.5% (↓)       Perth 1.0% (↓)     Hobart 0.8% (↑)        Darwin 0.9% (↓)       Canberra 0.6% (↓)     National 1.2%        National 1.2% (↓)            UNIT RENTAL VACANCY RATES AND TREND         Sydney 2.3%ey 2.4% (↓)       Melbourne 3.0% (↓)       Brisbane 1.3% (↓)       Adelaide 0.7% (↓)     Perth 1.3% (↑)        Hobart 1.2% (↓)     Darwin 1.1% (↑)        Canberra 1.6% (↓)     National 2.1%       National 2.1% (↓)            AVERAGE DAYS TO SELL HOUSES AND TREND         Sydney 31.2 (↓)       Melbourne 30.9 (↓)       Brisbane 35.7 (↓)       Adelaide 27.6 (↓)       Perth 40.5 (↓)       Hobart 30.2 (↓)       Darwin 27.1 (↓)     Canberra 28.1 (↑)        National 31.4 (↓)            AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 33.7 (↓)       Melbourne 32.6 (↓)       Brisbane 34.8 (↓)       Adelaide 29.5 (↓)       Perth 46.6 (↓)       Hobart 27.4 (↓)       Darwin 38.2 (↓)       Canberra 30.2 (↓)       National 34.1 (↓)           
Share Button

China’s Stumbling Property Sector Shows Long Road To Recovery

Pressure isn’t expected to ease as data for two key sectors came in negative for July.

By Cao Li
Mon, Aug 1, 2022Grey Clock 5 min

China’s major economic pillars wobbled in July with weakness in manufacturing and the all-important property sector, showing the pressure on a country that remains a drag on the struggling global economy.

Chinese manufacturing activity unexpectedly contracted in July, as Beijing’s stringent Covid-19 restrictions and weak demand undercut hopes for a more robust economic revival.

The official manufacturing purchasing managers index pulled back to 49.0 in July from 50.2 in June, China’s National Bureau of Statistics said Sunday. The result left the index below the 50 level that separates expansion from contraction and short of the median forecast of 50.3 among economists polled by The Wall Street Journal.

Meanwhile, a nascent two-month recovery in China’s home sales ended in July as a widespread mortgage revolt over concerns that ailing property developers wouldn’t be able to deliver still-unfinished apartments weighed on demand.

Sales at the country’s top 100 property developers fell a sharp 39.7% in July from the same period last year to the equivalent of $77.6 billion, or 523.14 billion yuan, according to data released Sunday by China Real Estate Information Corp., a Shanghai-based real-estate data provider.

July sales were down 28.6% from June, ending a two-month recovery in month-to-month sales growth. Apartment sales showed increases in May and June from the previous months as activity picked up following long Covid-19 lockdowns in Shanghai and other Chinese cities earlier this year.

The results in manufacturing and real estate, itself accounting for one-third of China’s economy by some estimates, underscored how far the country remains from any semblance of postpandemic normalcy.

Although local governments across China have grown more adept at controlling Covid-19 outbreaks swiftly and with fewer disruptions than in previous months, Beijing has reaffirmed its commitment to strict zero-Covid policies for the foreseeable future.

And while municipalities have stepped up activity to support the property sector and tamp down public anger over unfinished apartments, the central government has yet to come up with the sort of broad rescue fund that some economists say is needed.

On Thursday, the Politburo, the top policy-making body of China’s ruling Communist Party, indicated the government remains comfortable with its approach. It toughened its language on the importance of containing Covid-19 and explicitly cited political considerations in balancing pandemic controls and economic growth. It also offered little sign that it would relent from its property-sector regulatory campaign.

In mid-July, China reported that gross domestic product expanded at a meagre 0.4% annual rate in the second quarter compared with a year earlier, its weakest growth rate in more than two years, highlighting the depth of the damage caused by stringent lockdowns. The poor showing has prompted top leaders to effectively acknowledge that the government’s official GDP target of roughly 5.5% growth in 2022 is now out of reach, barring a big stimulus push that Beijing has all but ruled out.

Chinese officials speaking Sunday nodded to the challenges ahead for the economy.

“The foundation of economic recovery still needs to be consolidated,” said Zhao Qinghe, a senior official at the statistics bureau, citing insufficient market demand and weakness among energy-intensive industries as particular sources of concern.

The negative readings come as growth in the U.S. has weakened as well.

The U.S. economy shrank for a second quarter in a row, as the country’s housing market buckled under rising interest rates and high inflation took steam out of business and consumer spending.

The U.S. Commerce Department said GDP adjusted for seasonality and inflation fell at an annual rate of 0.9% in the second quarter after a 1.6% contraction in the first three months of the year.

The two consecutive declines meet a rule of thumb for a recession. While the U.S. determines recessions differently, its economy is clearly decelerating.

Economic growth in the eurozone accelerated in the second quarter, buoyed by the lifting of most pandemic restrictions even as Russia’s invasion of Ukraine sent energy and food costs surging.

The European Union’s statistics agency on Friday said the combined gross domestic product of the eurozone’s members was 0.7% higher in the three months through June than in the first quarter.

Still, business surveys for July suggest the eurozone is already experiencing a decline in economic activity, and Russian cuts to natural gas supplies would add to the pressures on the economy.

The pressure on major world economies comes as global economic activity and consumers have been broadly hurt by supply disruptions and price increases triggered by imbalances arising from the pandemic and worsened drastically by the war in Ukraine. Aggressive interest-rate increases by major central banks around the world are expected to further suppress economic activity.

In China’s manufacturing sector, only 10 of the 21 industries surveyed by the statistics bureau showed expansion in July compared with 13 in June.

China’s export sector, a key growth engine for the country’s initial postpandemic recovery, continued to disappoint. In July, the PMI subindex tracking export orders remained in contractionary territory for a 15th consecutive month.

More downside risks remain after the U.S. Federal Reserve raised its benchmark lending rate by another 0.75 percentage point in late July, its second such move this summer, in a bid to combat inflation. Tightening rates in the U.S. and other major economies threaten to stifle overseas demand for Chinese-made goods, economists say.

Joblessness among workers age 16 to 24 has soared, rising to a record 19.3% in June from 18.4% in May. The subindex tracking employment edged down to 48.6 from 48.7 in June, the statistics bureau said Sunday.

Separately on Sunday, China’s official nonmanufacturing PMI fell to 53.8 in July from a reading of 54.7 in June, the statistics bureau said. The subindex measuring service-sector activity pulled back to 52.8 in July from 54.3 in June, while the subindex tracking construction activity rose to 59.2 from 56.6.

While both subindexes remain in expansionary territory, strict social restrictions requiring, for instance, PCR testing results to board public transit or enter restaurants in many cities as well as quarantines for those traveling from one city to another, continue to cast a shadow over consumer demand, especially for restaurants, hotels and entertainment venues.

The weaker PMI readings took place against the backdrop of continued sporadic Covid-19 outbreaks in July, though the lockdowns were largely confined to less-developed regions of the country, including landlocked Gansu province in China’s arid northwest and poor, mountainous Guangxi in the southwest.

Meanwhile, the property-market weakness that began late last year has gone from bad to worse in recent weeks as home buyers across the country threaten to halt mortgage payments for unfinished apartments, which in turn has further weakened developers and some regional banks, scared off other potential home buyers and dented market confidence more broadly.

The revolt started at the end of June at a China Evergrande Group project in Jingdezhen, a city in south-central China’s Jiangxi province, where frustrated home buyers threatened to renege on mortgages on unfinished properties. Hundreds of buyers from roughly 320 projects across the country had followed suit as of July 29, according to a tally of statements from homeowners who said they would stop paying their mortgages circulating on GitHub, a Microsoft Corp.-owned coding-collaboration site.

Home buyers—some waving signs saying “Construction stops and mortgage stops!”—say the threat to halt payments is the only way to get their voices heard as projects stall and delivery times drag out. A broadly slowing economy that is biting into employment and incomes is adding to the pressure. Some buyers say they are increasingly unwilling to keep paying for a home they aren’t sure they will ever receive.

Week-over-week data put together earlier by CRIC to study the impact of the mortgage revolt had signalled the July decline. In 30 cities CRIC determined to have been seriously affected by the revolt, new-home sales dropped by 12% in the week ended July 10 from the week before, then fell another 41% in the week ended July 17.

Pressure on the government is building, but hopes among some developers, investors and creditors for a large real-estate rescue package from Beijing remain unrealized. The Politburo made clear recently that local governments are ultimately responsible for fixing the property woes in their markets.

Budget-strapped local authorities have strained to boost property demand, resorting to increasingly creative measures. Dozens of cities have lowered down payments and interest rates. Some are offering outright cash subsidies. Others have announced relief funds for cash-strapped developers or plans to take over troubled projects.

Even so, said Song Hongwei, a research director of Tongce Research Institute, which tracks and analyzes China’s real-estate market, “the sector won’t stabilize if developers’ liquidity crunch is not relieved.”

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: July 31, 2022.

MOST POPULAR

Interior designer Thomas Hamel on where it goes wrong in so many homes.

Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.

Related Stories

The waterfront residence is one of Port Stephens’ finest homes.

By Kanebridge News
Fri, Aug 12, 2022 2 min

In the coastal township of Salamander Bay — nearby to Port Stephens — comes a unique home crafted to take full advantage of unbroken ocean vistas across three levels.

With one-of-a-kind flair, the stunning 5-bedroom, 3-bathroom, 3-car garage home of 52 Randall Drive Salamander Bay is nestled on a private 577sqm plot, optimised through intelligent design to take advantage of the Port Stephens landscape and lifestyle.

Within the home sees the typically coastal textures of natural oak floor and timber feature walls take hold while stone and tiled adornments add layers of luxury.

The open plan living, kitchen and dining areas incorporate a fireplace and near floor-to-ceiling glass that opens to create a seamless indoor-to-outdoor dining and entertaining space on the home’s top floor.

The heart of this area is the kitchen, centred around a marble-topped island, state-of-the-art European appliances and an attached bar area, with built-in refrigeration, accompanied by a butler’s pantry.

Also here comes a grand outdoor spa, central to the balcony, while another outdoor entertaining area with a pizza oven is found on the middle floor.

Downstairs once again comes a second living space replete with the perfect wine cellar — cooled by the natural rock foundation of the home — offering an array of entertaining options

Of the home’s accommodation comes a private and luxurious master retreat with expansive ocean views, a walk-in wardrobe and an ensuite, here, speckled with grey terrazzo tiling and timber joinery vanities.  A further four bedrooms are found throughout the home along with two family bathrooms rounding out the offering.

Less than a five-minute walk from nearby amenities of shops, restaurants, cafes and beaches the home offers the best of the Port Stephens area.

The listing is with PRD Port Stephens’ Dane Queenan (+61 412 351 819) and Erin Sharp (+61 499 912 311) and is heading to auction; prd.com.au