Sydney and Melbourne house prices rose to a record last quarter, suggesting the nation’s property boom isn’t over yet... ‘Tough’ earnings season looming for the big banks
(Bloomberg) -- Sydney and Melbourne house prices rose to a record last quarter, suggesting the nation’s property boom isn’t over yet.
The median house price in Sydney rose 2.7 percent in the three months ended Sept. 30 to A$1.068 million ($822,000), real-estate listing firm Domain said in its quarterly house price report. Melbourne’s median house price jumped 3.1 percent to a record A$773,669.
The jump in prices defies calls the property boom has peaked, and may pile pressure on the government to take steps to address housing affordability amid increasing concern young people and first-time home buyers are being locked out of the market. Dwelling values in Sydney have almost doubled since the end of 2008, according to CoreLogic Inc.
Prices in Perth, which has been rocked by the end of the mining boom, fell to the lowest in more than three years, Domain said. Median house prices in the city declined 2 percent to A$566,609. Brisbane, Adelaide and Darwin house prices also went backwards last quarter.
Nationally, median house prices rose 1.7 percent last quarter, and are 3.5 percent higher than a year ago.
‘Tough’ earnings season looming for the big banks
(Bloomberg) -- It’s going to be a “tough” earnings season for the big banks, according to Goldman Sachs Group Inc.
Full-year results due from three of the lenders -- starting with National Australia Bank Ltd. on Thursday -- are poised to show that a record-breaking run of profits is coming to an end amid higher funding costs, lower interest margins and rising bad-debt charges.
Australia & New Zealand Banking Group Ltd. may report its lowest cash profit in four years, while Westpac Banking Corp.’s may be little changed, analyst surveys by Bloomberg indicate. The lenders all reported weaker-than-expected cash profit in the first half, the first time in at least a decade that three of the nation’s largest lenders missed estimates at the same time, according to data compiled by Bloomberg.
“Its likely to be a tough half,” Goldman Sachs analysts Andrew Lyons and Ashley Dalziell wrote in an Oct. 14 note to clients. “We expect margin contraction to feature.”
The analysts, along with those at Citigroup Inc. and Deutsche Bank AG, are among those who trimmed their expectations this month for the three banks’ results, which are due over the next two weeks.
The median house price in Sydney rose 2.7 percent in the three months ended Sept. 30 to A$1.068 million ($822,000), real-estate listing firm Domain said in its quarterly house price report. Melbourne’s median house price jumped 3.1 percent to a record A$773,669.
The jump in prices defies calls the property boom has peaked, and may pile pressure on the government to take steps to address housing affordability amid increasing concern young people and first-time home buyers are being locked out of the market. Dwelling values in Sydney have almost doubled since the end of 2008, according to CoreLogic Inc.
Prices in Perth, which has been rocked by the end of the mining boom, fell to the lowest in more than three years, Domain said. Median house prices in the city declined 2 percent to A$566,609. Brisbane, Adelaide and Darwin house prices also went backwards last quarter.
Nationally, median house prices rose 1.7 percent last quarter, and are 3.5 percent higher than a year ago.
‘Tough’ earnings season looming for the big banks
(Bloomberg) -- It’s going to be a “tough” earnings season for the big banks, according to Goldman Sachs Group Inc.
Full-year results due from three of the lenders -- starting with National Australia Bank Ltd. on Thursday -- are poised to show that a record-breaking run of profits is coming to an end amid higher funding costs, lower interest margins and rising bad-debt charges.
Australia & New Zealand Banking Group Ltd. may report its lowest cash profit in four years, while Westpac Banking Corp.’s may be little changed, analyst surveys by Bloomberg indicate. The lenders all reported weaker-than-expected cash profit in the first half, the first time in at least a decade that three of the nation’s largest lenders missed estimates at the same time, according to data compiled by Bloomberg.
“Its likely to be a tough half,” Goldman Sachs analysts Andrew Lyons and Ashley Dalziell wrote in an Oct. 14 note to clients. “We expect margin contraction to feature.”
The analysts, along with those at Citigroup Inc. and Deutsche Bank AG, are among those who trimmed their expectations this month for the three banks’ results, which are due over the next two weeks.
