High Inflation, Slowing Growth Raise Risk Of Global Downturn
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 (↓)           
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High Inflation, Slowing Growth Raise Risk Of Global Downturn

Yellen cites ‘stagflationary effects’ in a warning ahead of a meeting of leaders of seven wealthy nations.

By Josh Mitchell
Thu, May 19, 2022Grey Clock 4 min

The global economy is in danger of entering a period of so-called stagflation, or high inflation and weak growth, policy makers and corporate leaders say, which could erode living standards around the world.

United States Treasury Secretary Janet Yellen on Wednesday became the latest leader to warn of turbulence for the global economy. “Certainly the economic outlook globally is challenging and uncertain,” Ms. Yellen said in Bonn, Germany, ahead of a meeting of leaders of seven wealthy nations. “Higher food and energy prices are having stagflationary effects, namely, depressing output and spending and raising inflation all around the world.”

Growing fears of high inflation rippled through financial markets Wednesday after large retailers reported disappointing earnings due in part to their own higher costs. The Dow Jones Industrial Average fell more than 1,164 points, or 3.6%, as of 4 p.m. ET in its worst day since 2020. The tech-heavy Nasdaq fell more than 4%. Target Corp. shares sank 25%, putting the company on track for its largest single-day percentage decline since 1987.

Ms. Yellen—a former Federal Reserve chairwoman—indicated that inflation, particularly the rising cost of food and energy, is becoming a greater longer-term concern and will be a dominant theme among global leaders in the weeks and months ahead. She added that the strong U.S. economy could help buffer it from the threat.

“The United States in many ways is best positioned, I think, to meet this challenge, given the strength of our labour market and the economy,” Ms. Yellen said.

A day earlier, Fed Chairman Jerome Powell warned that “there could be some pain involved” in the U.S. as the central bank moves to raise interest rates further to tamp down high inflation.

Meanwhile, Wells Fargo & Co. CEO Charlie Scharf said this week there was no question that the U.S. is headed for an economic downturn. “It’s going to be hard to avoid some kind of recession,” Mr. Scharf said Tuesday at The Wall Street Journal’s Future of Everything Festival.

Earlier this week, Ben Bernanke, also a former Fed leader, raised the possibility of stagflation in an interview published in the New York Times. “Even under the benign scenario, we should have a slowing economy,” he said. “And inflation’s still too high but coming down. So there should be a period in the next year or two where growth is low, unemployment is at least up a little bit and inflation is still high.”

Mr. Bernanke wasn’t available to comment, a spokeswoman said.

Inflation fears have risen in recent days because of new pressures that could further push up prices for oil and food from already-high levels. The European Union this week released a plan aimed at ending its dependence on Russian energy within five years. Rising food prices—also linked to Russia’s invasion of Ukraine, a major global producer of crops—are triggering shortages across the developing world. The U.K. government reported this week that inflation hit a 40-year high of 9% in April. That eclipsed inflation in the U.S., which hit 8.3% in April.

Meanwhile, economists have cut their forecasts for global economic growth this year as China and Europe show signs of a slowdown. China reported this week that consumer spending and output fell sharply in April as the government imposed new lockdowns to stem a wave of Covid-19 infections.

Last month, the International Monetary Fund said it sees the world’s economy expanding 3.6% this year, down from 6.1% last year. The most recent forecast was 0.8 percentage point lower than its projection in January and a 1.3 point cut from its October 2021 outlook.

The Bank of England earlier this month warned that the U.K. was likely to enter a recession.

One big factor behind the darkening outlook is signs from the Fed and the European Central Bank of a more hawkish stance to aggressively tackle inflation. The Fed last month raised interest rates by a half-percentage point—the biggest increase since 2000—and is planning additional increases this year.

ECB President Christine Lagarde indicated this month that she would support raising the central bank’s main interest rate in July, which would mark the first such increase in more than a decade. Higher interest rates mean that the cost of borrowing—for homes, cars, business expansions and other items—would go up, and could ultimately force consumers and firms to cut back, slowing inflation but also economic growth.

Even if the global economy avoids recession, many people could feel like they are in one, economists say. With the cost of living rising faster than most workers’ paychecks, consumers are getting less and less for each dollar they spend. Five dollars spent at the local cafe might get them a medium coffee instead of a large, for instance. Three hundred dollars spent on airfare might get someone from San Francisco to Denver, but not to Chicago.

Americans accumulated savings during the pandemic, as many reduced expenses and received government stimulus. That is now reversing. The saving rate fell in March to the lowest in nine years, according to the Commerce Department. Households are increasingly pulling out their credit cards and spending down their savings to keep up. Americans’ debt loads rose quickly in the year through March after stalling earlier in the pandemic, the latest Fed data show. As interest rates rise, monthly payments on that debt would further eat into household finances, economists say.

For now, the fundamentals of the U.S. economy are solid, with households still in a strong position financially as more people get jobs and return to old habits like travelling, dining out and going to concerts. Sales at American retailers—a big chunk of consumer spending, the biggest source of economic activity in the U.S.—rose in April for the fourth straight month, the Commerce Department said this week.

April’s unemployment rate of 3.6% remained just a shade above the 50-year low set just before the pandemic. Job openings across the U.S. reached a record high of 11.5 million in March.

But the risk of a recession has risen in recent weeks, and certain problems—such as supply chains disrupted by Covid-19 lockdowns in China and the Ukraine war—could be largely beyond the ability of central banks to address.

Diane Swonk, chief economist at the consulting firm Grant Thornton LLP, said one risk is that persistently high inflation would ultimately cause consumers to cut spending and businesses to slow hiring to maintain profit margins. If that happens, there would, for a period at least, be high inflation and rising unemployment—a combination generally known as stagflation that defined the 1970s, when oil shocks, high federal spending and loose monetary policy caused inflation to soar.

Unemployment could rise, as could homelessness, Ms. Swonk said. People could be forced to move in with parents and relatives and do away with healthcare, not to mention vacations and dinner outings.

“Inflation erodes living standards, and especially the kind of inflation we’re talking about—of basic needs—food and shelter and energy, the three pillars of existence,” Ms. Swonk said. “That kind of inflation is an incredible threat to the economy. We’re talking about a humanitarian crisis on top of what’s already been a pandemic and a war in continental Europe.”

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 18, 2022.

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An expansive waterfront property with global designer flair.

By Terry Christodoulou
Fri, Jul 1, 2022 2 min

It’s bold to refer to any property in absolutes, but here Portovenere Estate represents Clontarf’s grandest waterfront statement and its most coveted residence.

Designed in the 1960s, the two-storey, 7-bedroom, 8-bathroom and 5-car parking pile is set on an impressive 3015sqm waterfront plot. Since its inception, the home has had no expense spared in its contemporary reimagining.

Within, the home sees a global interpretation of design elevated by bespoke luxurious finishes from all over the world at every turn.

It starts from before you enter the front door — here an imported Ghizzi and Benatti fixtures from Italy. Once inside, one notices the heated marble and Savadi timber flooring that sweeps through the multiple living and entertaining zones including the family room, formal and casual dining.

Here in these living zones is a combination of designer furnishings and chandeliers from Fendi, Versace and Articolo and a made-to-order Ravens 11 ping-pong table — all of which is available as an option when purchasing the home.

Elsewhere the home’s kitchen is replete with Manhattan calacatta marble and is fitted with Gaggenau appliances and Sub-Zero refrigerators. The butler’s pantry is almost equally luxurious with Miele commercial appliances found here.

Further, the home’s multiple bathrooms are, too, fitted with Ceraba mosaic tiles and Gessi luxury tapware and shower systems.

Throughout the home’s many bedrooms, each is fitted with a timber veneer bedhead design, while the master bedroom sees a Madrona Burl veneer back panel and is complete by its own expansive ensuite (with a spa) and walk-in robe.

Both levels of the home feature outdoor space built to entertain fitted with outdoor BBQ appliances, pizza oven and Janus et Cie furnishing. Further outdoor amenities include the L.A Lakers half-court basketball court, mini soccer field and elevated podium pool.

Back inside, the home is fitted with a number of mod-cons including a poker table, in-home cinema, wine cellar, gym, salon and study with home automation and security managed by a Savant smart system.

A sandstone adorned rooftop entertaining terrace tops off the heady list of amenities that this residence holds, offering stunning views across the waterside suburb and beyond. All levels are accessed via a KONE lift.

The home is also privy to completely contained staff quarters suitable for an in-house au pair.

The property is listed with Monika Tu (+61 409 898 888) of Black Diamondz Property Concierge with a price guide of $35m -$38m; blackdiamondz.com.au

The city-fringe locale continues to boom with its prized mansions and natural amenities

By Sue Wallace
Thu, Jun 30, 2022 5 min

From stately historic mansions to expensive new builds with underground garage space for 20 cars, Medindie, the exclusive inner northern suburb of Adelaide,  has always been a well-heeled location with buyers lining up to own property bearing the blue-ribbon address.

Many keen buyers and investors are prepared to wait years for a grand Victorian mansion or a more contemporary sprawling home to come on the market in the area. Such properties tend to move fast. Stunning mansions with impressive facades, sweeping lawns, manicured gardens, tennis courts and swimming pools are located on expansive 1-acre landholdings that cannot be developed or subdivided, making them even more attractive to buyers.

The suburb is home to many historic dwellings including Willyama, built in 1883 by prospecter Charles Rasp, who discovered the rich ore deposits at Broken Hill in New South Wales, and The Briars, built in 1856 for George Hawker, which became a hospital.

Robe Terrace is the suburb’s star attraction, lined with attractive mansions including The Elysian, a modern residence which smashed the state’s residential sales record after selling in excess of $10 million last year. Pretty Victorian villas, contemporary terraces, townhouses and cottages are also sought after, but it’s those grand mansions that are the drawing card.

Medindie offers quality inventory at all levels and attracts families looking for a long-term hold and professionals after a “lock and leave” lifestyle seeking a comfortable base while in Adelaide.

It appeals to medical professionals wanting to be close to major hospitals as well as farmers based in the north of the state wanting a weekender close to the CBD, North Adelaide and Adelaide Oval, a sports and entertainment venue

Nature lovers and fitness fans enjoy the Adelaide Park Lands, known as Australia’s biggest backyard, while the River Torrens Linear Park Trail is a spectacular 30-kilometer nature walk.

It is also on the doorstep of vibrant cosmopolitan precincts including Prospect Road, Walkerville Terrace and O’Connell Street, which showcase charm and convenience.

There is direct access into the city centre, Adelaide Zoo and the Botanical Gardens, plus it’s an easy walk into Rundle Street precinct for shopping.

Adelaide real estate agent Stephanie Williams of Williams Luxury Real Estate said Medindie exudes glamour and prestige with some jaw-dropping homes.

“As well as stunning properties, there are some new properties with show off features such as underground accommodation for 15 to 20 cars and mind-blowing cellars,” she said.

The suburb is a 10-minute drive north from the city center and a 20-minute drive to Adelaide International Airport.

Boundaries

Medindie is adjacent to the Adelaide Park Lands, north of North Adelaide, and is bounded by Robe Terrace to the south, Northcote Terrace to the east, Nottage Terrace to the north and Main North Road to the northwest. It is close to Adelaide’s central business district and surrounded by parklands.

Price Range

According to Kaytlin Ezzy, CoreLogic research analyst, Medindie houses recorded a median value as of April of A$2 million with top-tier values ranging from $2.38 million to $3.47 million. Compared to the nearby Prospect-Walkerville, Medindie’s median value is 62.6% higher, equivalent to a value gap of approximately $771,863, and nearly double (91%) the median value of the greater Adelaide region ($1.05 million).

Ms. Ezzy said the trend in Medindie’s house values has been positive over the past few years, rising 30.1% over the year to April and 57.2% over the past five years. This has resulted in the median value rising from $1.27 million in April 2017 to $1.54 million in 2021 before rising $463,644 over the past year resulting in a current median value of just over $2 million.

Medindie continues to be one of South Australia’s most prestigious suburbs and is home to generations of families who have resided there for centuries as well as newly wealthy buyers, according to Ms. Williams.

“Once they buy there, they remain, as it is an extremely tightly held location, offering unsurpassable exclusivity and prestige—significant mansions and luxurious estates and properties with prominent land holdings have encouraged affluent families to invest in this area for generations,” she said.

Housing Stock

There is a very pronounced short supply of luxury properties on the market in Medindie, where there is a variety of architecture from historic Victorian styles to modern contemporary housing.

There are attractive villas, terraces, townhouses and cottages that are also sought after.

Ms. Williams said lifestyle estates and family homes always sell within their scheduled sales campaigns whether via expressions of interest, auction, or private treaty.

This six-bedroom, four-bathroom luxury home in Medindie is currently under contract.WILLIAMS LUXURY

“Covid has changed the buying patterns of the luxury market in particular with wealthy clients changing their priorities to more home-based activities, with health and wellness being a major priority,” Ms. Williams said. “The desire for swimming pools, tennis courts, beautiful established gardens, wellness retreats and home offices being more popular than ever before. Luxury homes have never been in greater demand.”

Statistics show Medindie has 394 residential homes for sale compared to the nearby suburbs of Norwood, which has 1,901 residential homes on the market, and St. Peters, which has 870 residential homes for sale.

What Makes It Unique

Buyers are attracted to Medindie for the magnificent adjacent parklands, its proximity to central Adelaide and larger-than-average block sizes.

It is also the only suburb within a short stroll of the exclusive girls-only Wilderness School.

Luxury Amenities

Medindie is surrounded by shopping locales, including the Rundle Mall and Rundle Street in the city, which offer a wide range of luxury boutiques, including the David Jones department store. It is also very close to fashion-forward Melbourne Street and cosmopolitan O’Connell Street, the North Adelaide Shopping Village, and the shops along super-trendy Prospect Road.

Grocery stores in North Adelaide include Cibo Espresso, The Flying Fig, Coffee Gods Café, Romeo’s Foodland and The North Adelaide Village.

Top restaurants include The Lion Hotel, a South Australian icon that is directly across the Parklands, and North Adelaide has the Gin Long Canteen, Ruby Red Flamingo and Marrakech. The nearby Adelaide CBD has a vast range of excellent restaurants including Soi 38 known for its Thai cuisine, Italio-American inspired Fugazzi Bar and Dining Room, Osteria Oggi, Japanese-inspired Erato Teppanyaki, Arkhe on The Parade where chef Jake Kellie from Michelin star Burnt Ends in Singapore stars, and Orso on Kensington Road that has a following for its seafood and pasta.

Private schools include the Wilderness School, St. Peters College, Prince Alfred College and St. Andrews School. Nearby public schools include the new Adelaide Botanic High School, North Adelaide Primary School, Walkerville Primary School and Prospect Primary School.

Who Lives There?

Property tycoons, farmers, bankers, medical specialists, successful IT professionals and socialites all call Medindie home.

Outlook

Ms. Williams said the market in Medindie continues to be incredibly strong, with buyer demand for this esteemed suburb at an all-time high and showing no signs of slowing down.

“We are continuing to experience a very high level of buyer inquiry for homes for sale in the area and some homes are selling off-market without reaching the paper or any online platforms,” she said.

“The suburb has always performed extremely well from a capital growth perspective and consistently features in the top 10 performing suburbs in South Australia. The average house price in Medindie over the past 12 months is A$2.68 million, which is an incredible growth of 82.4% during this time.”

Ms. Essy said while still reporting strong quarterly growth compared to the national trend (5.6%), capital appreciation across the Adelaide house market has started to ease.

“With the cash rate starting to rise and consumer confidence continuing to trending downwards, it’s likely the housing market is inching toward a downswing, with the higher end of the market typically showing more volatility both in the upwards and downwards phase of the cycle,” she said.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 18, 2022.

In the year to May, an additional 497 markets joined the million-dollar club.

By Kanebridge News
Tue, Jun 28, 2022 2 min

A record number of Australians spent $1 million or more to purchase a home in the past 12 months according to CoreLogic’s annual Million Dollar Markets report.

Over the year to March 2022, CoreLogic collected 596,733 sales nationally up 19.8% from the 497,923 recorded over the previous year. Of those sold this year, 23.8% sold for $1 million or more.

In the year to May, an additional 497 markets 450 houses and 37 unit markets) joined the million-dollar club bringing the total markets to 1367 or 30.4% of house and unit markets analysed in May to a median value of $1 million or more.

“High consumer sentiment, tight advertised supply, and low-interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4% over the 12 months to January,” said CoreLogic Research Analyst Kaytlin Ezzy.

“Despite values having risen across all capital cities and rest of state areas annually, we have seen a divergence in growth conditions across markets over the year to date.

“Since January, dwelling values across Sydney and Melbourne have started to decline, while values have continued to rise across South Australia and Queensland. More recently, Canberra, which had previously recorded many months of consecutive growth, recorded its first falls in dwelling values in some years in May.”

Sydney suburbs made up 26.3% of the new million-dollar markets with more than half of all Sydney sales over the 123 months to May transacting at or above $1 million.

In Sydney, 448 house and 104 unit markets have a current median value of $1 million dollars or higher, an increase of 26.6% from the previous year.  The new million-dollar markets are largely concentrated in the city’s South West (30) and Outer South West (15) as well as the Central Coast region (20).

In the year to May, 51.9% of transactions in Sydney sold for $1 million or more. Bellevue Hill in Sydney’s Eastern Suburbs is the most expensive house market, both across Sydney and nationally, with a current median value of $8,024,682.

Elsewhere, in Melbourne 212 house and 11 unit markets had a median value at or above $1 million in May majority of which are located in Melbourne’s Inner (39), Inner South (42), Inner East (30) and Outer East (30).