Wednesday, September 21, 2016

ABS - Perth is back to 2013 house prices

If you bought a house before 2013, chances are that your house has not appreciated any more in the last three years according to the Australian Bureau of Statistics. Over the past year, house prices in Perth have fallen by 4.8% while the national trend in the last three months has been to increase by 2%. It is the largest annual rate of decline in Perth since mid-2011 and prices now are at the same level as in 2013. 2014 saw Perth prices peak but house prices have dropped by almost 6% since then. In the last five years, the RBA cash rate has dropped from 4.75% to 1.5% today. So while interest rates have never been so good, house prices seem stagnant, to falling.

Tuesday, August 2, 2016

Australian Cash Rate Now 1.50%

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. Actions by Chinese policymakers are supporting the near-term growth outlook, but the underlying pace of China's growth appears to be moderating.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
Financial markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest that overall growth is continuing at a moderate pace, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators continue to be somewhat mixed, but are consistent with a modest pace of expansion in employment in the near term. 
Recent data confirm that inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in lending for housing purposes has slowed a little this year. All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished. 
Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.

Friday, July 1, 2016

Perth 7.4% House Price Decline in 18 months

If you have been listening to the real estate agents, you would be thinking that the house prices are about to go back up again. Unfortunately, the last 18 month has seen a 7.4% drop in house prices in Perth. We are the worst performing market in Australia.

Over six months, house prices have dropped 4.7%, and 7.4% in the last 12 months. The closest market to Perth is Darwin but they have only dropped 1.1%. How's the east coast doing? Sydney is up 11.3% and Melbourne is up 11.5% over the last year. The vacancy rate is sitting at 4.7%, also the worst in the country.

15% of Perth Houses Selling at Loss

Compared to last year, two times more apartments and three times more houses have sold at a loss this year according to CoreLogic RP Data. 23% of apartments and almost 15% of houses sold at a loss in Perth compared to 11.7% and 5.1% last year indicating that the pressure is increasing on people to liquidate. Most of these houses and apartments were held for about 5 years when the mining boom was at its highest.

For those looking for a home in Perth, the time could be right to make an offer.

Tuesday, June 7, 2016

Cash rate left steady

At its meeting today, the Board decided to leave the cash rate unchanged at 1.75 per cent.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. China's growth rate moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
In financial markets, conditions have generally been calmer for the past several months following the period of volatility early in the year. Attention is now turning to some particular event risks. Funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with continued expansion of employment in the near term.
Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector. Over the past year, growth in credit to businesses has picked up, even as that to households has moderated a little. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.
Taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time.

22% CBD Offices Vacant - Worst in 23 years

Well you know we are in a downturn and the mining boom has ended when 22% of offices in the CBD are empty in Perth. This is the worst result in 23 years, going back to 1993 when the vacancy rate was this high. Rent is down 40% from figures in 2012 and BIS Shrapnel are suggesting that there are two more years of downturn before there is any change in momentum in Perth.

Many of the landlords for office spaces around Perth are offering rent incentives and some renovating empty floors into state of the art end-of-trip facilities that even a professional gym would be proud of. Has your office undergone such upgrades? let us know.

Tuesday, May 31, 2016

Australia's Skilled Occupation List for 2016-17 in Alphabetical Order

One of the most watched lists for people looking to migrate to Australia is the annual skilled migrant list which is also a reflection of the needs of the nation. Unsurprisingly, the 2016-17 list shown below in alphabetical order has seen Mining and Petroleum Engineers removed from the list due to the end of the mining boom. 


Occupation ANZSCO Code Assessing Authority
Construction Project Manager 133111 VETASSESS
​Cabinetmaker ​394111 ​TRA
​Panelbeater ​324111 ​TRA
Accountant (General) 221111 CPA/CA/IPA
Actuary 224111 VETASSESS
Aeronautical Engineer 233911 Engineers Australia
Agricultural Consultant 234111 VETASSESS
Agricultural Engineer 233912 Engineers Australia
Agricultural Scientist 234112 VETASSESS
Airconditioning and Mechanical Services Plumber 334112 TRA
Airconditioning and Refrigeration Mechanic 342111 TRA
Anaesthetist 253211 Medical Board of Australia​
Analyst Programmer 261311 ACS
Architect 232111 AACA
Automotive Electrician 321111 TRA
Barrister 271111 SLAA
Biomedical Engineer 233913 Engineers Australia
Boat Builder and Repairer 399111 TRA
Bricklayer 331111 TRA
Cardiologist 253312 Medical Board of Australia​
Cardiothoracic Surgeon 253512 Medical Board of Australia​
Carpenter 331212 TRA
Carpenter and Joiner 331211 TRA
Cartographer 232213 VETASSESS
Chef*** 351311 TRA
Chemical Engineer 233111 Engineers Australia
Child Care Centre Manager 134111 TRA
Chiropractor 252111 CCEA
Civil Engineer 233211 Engineers Australia
Civil Engineering Draftsperson 312211 Engineers Australia​VETASSESS
Civil Engineering Technician 312212 VETASSESS
Clinical Haematologist 253313 Medical Board of Australia​
Clinical Psychologist 272311 APS
Computer Network and Systems Engineer 263111 ACS
Dental Hygienist 411211 VETASSESS
Dental Prosthetist 411212 TRA
Dental Technician 411213 TRA​
Dental Therapist 411214 VETASSESS
Dermatologist 253911 Medical Board of Australia​
Developer Programmer 261312 ACS
Diagnostic and Interventional Radiologist 253917 Medical Board of Australia​
Diesel Motor Mechanic 321212 TRA
Drainer 334113 TRA
Early Childhood (Pre-Primary School) Teacher 241111 AITSL​
Educational Psychologist 272312 APS
Electrical Engineer 233311 Engineers Australia
Electrical Engineering Draftsperson 312311 Engineers Australia​
Electrical Engineering Technician 312312 TRA
Electrical Linesworker 342211 TRA
Electrician (General) 341111 TRA
Electrician (Special Class) 341112 TRA
Electronic Equipment Trades Worker 342313 TRA
Electronic Instrument Trades Worker (General) 342314 TRA
Electronic Instrument Trades Worker (Special Class) 342315 TRA
Electronics Engineer 233411 Engineers Australia
Emergency Medicine Specialist 253912 Medical Board of Australia​
Endocrinologist 253315 Medical Board of Australia​
Engineering Manager 133211 Engineers Australia​/AIM
Engineering Technologist 233914 Engineers Australia
Environmental Engineer 233915 Engineers Australia
Environmental Health Officer 251311 VETASSESS
External Auditor 221213 CPA/CA/IPA
Fibrous Plasterer 333211 TRA
Fitter (General) 323211 TRA
Fitter and Turner 323212 TRA
Fitter-Welder 323213 TRA
Forester 234113 VETASSESS
Gasfitter 334114 TRA
Gastroenterologist 253316 Medical Board of Australia​
General Practitioner 253111 Medical Board of Australia
Geotechnical Engineer 233212 Engineers Australia
Glazier 333111 TRA
ICT business Analyst 261111 ACS
Industrial Engineer 233511 Engineers Australia
Intensive Care Specialist 253317 Medical Board of Australia​
Internal Auditor 221214 VETASSESS
Joiner 331213 TRA
Land Economist 224511 VETASSESS
Landscape Architect 232112 VETASSESS
Lift Mechanic 341113 TRA
Locksmith 323313 TRA
Management Accountant 221112 CPA/CA/IPA
Materials Engineer 233112 Engineers Australia
Mechanical Engineer 233512 Engineers Australia
Medical Administrator 134211 VETASSESS
Medical Diagnostic Radiographer 251211 AIR
Medical Laboratory Scientist 234611 AIMS​
Medical Oncologist 253314 Medical Board of Australia​
Medical Practitioners nec 253999 Medical Board of Australia​
Medical Radiation Therapist 251212 AIR
Metal Fabricator 322311 TRA
Metal Machinist (First Class) 323214 TRA
Metallurgist 234912 VETASSESS
Midwife 254111 ANMAC​
Mining Engineer (Excluding Petroleum) 233611 Engineers Australia
Motor Mechanic (General) 321211 TRA
Motorcycle Mechanic 321213 TRA
Naval Architect 233916 Engineers Australia
Neurologist 253318 Medical Board of Australia​
Neurosurgeon 253513 Medical Board of Australia​
Nuclear Medicine Technologist 251213 ANZSNM
Nurse Practitioner 254411 ANMAC​
Nursing Clinical Director 134212 ANMAC
Obstetrician and Gynaecologist 253913 Medical Board of Australia​
Occupational Health and Safety Adviser 251312 VETASSESS
Occupational Therapist 252411 OTC
Ophthalmologist 253914 Medical Board of Australia​
Optometrist 251411 OCANZ
Organisational Psychologist 272313 APS
Orthopaedic Surgeon 253514 Medical Board of Australia​
Osteopath 252112 ANZOC
Other Spatial Scientist 232214 VETASSESS
Otorhinolaryngologist 253515 Medical Board of Australia​
Paediatric Surgeon 253516 Medical Board of Australia​
Paediatrician 253321 Medical Board of Australia​
Painting trades workers 332211 TRA
Pathologist 253915 Medical Board of Australia​
Petroleum Engineer 233612 Engineers Australia
Physicist (Medical Physicist only) 234914 ACPSEM
Physiotherapist 252511 APC
Plastic and Reconstructive Surgeon 253517 Medical Board of Australia​
Plumber (General) 334111 TRA
Podiatrist 252611 APodCANZPAC
Pressure Welder 322312 TRA
Primary Health Organisation Manager 134213 VETASSESS
Production Manager (Mining) 133513 VETASSESS
Production or Plant Engineer 233513 Engineers Australia
Project Builder 133112 VETASSESS
Psychiatrist 253411 Medical Board of Australia​
Psychologists nec 272399 APS
Psychotherapist 272314 VETASSESS
Quantity Surveyor 233213 AIQS
Radiation Oncologist 253918 Medical Board of Australia​
Radio Communications Technician 313211 TRA
Registered Nurse (Aged Care) 254412 ANMAC​
Registered Nurse (Child and Family Health) 254413 ANMAC​
Registered Nurse (Community Health) 254414 ANMAC​
Registered Nurse (Critical Care and Emergency) 254415 ANMAC​
Registered Nurse (Developmental Disability) 254416 ANMAC​
Registered Nurse (Disability and Rehabilitation) 254417 ANMAC​
Registered Nurse (Medical Practice) 254421 ANMAC​
Registered Nurse (Medical) 254418 ANMAC​
Registered Nurse (Mental Health) 254422 ANMAC​
Registered Nurse (Paediatrics) 254425 ANMAC​
Registered Nurse (Perioperative) 254423 ANMAC​
Registered Nurse (Surgical) 254424 ANMAC​
Registered Nurses nec 254499 ANMAC​
Renal Medicine Specialist 253322 Medical Board of Australia​
Rheumatologist 253323 Medical Board of Australia​
Roof plumber 334115 TRA
Secondary School Teacher 241411 AITSL​
Sheetmetal Trades Worker 322211 TRA​
Ship's Engineer 231212 AMSA
Ship's Master 231213 AMSA
Ship's Officer 231214 AMSA
Shipwright 399112 TRA
Small Engine Mechanic 321214 TRA
Social Worker 272511 AASW​
Software Engineer 261313 ACS
Solicitor 271311 SLAA
Solid Plasterer 333212 TRA
Sonographer 251214 AIR
Special Education Teachers nec 241599 AITSL​
Special Needs Teacher 241511 AITSL​
Specialist Physician (General Medicine) 253311 Medical Board of Australia​
Specialist Physicians nec 253399 Medical Board of Australia​
Speech Pathologist 252712 SPA
Stonemason 331112 TRA
Structural Engineer 233214 Engineers Australia
Surgeon (General) 253511 Medical Board of Australia​
Surveyor 232212 SSSI
Systems Analyst 261112 ACS
Taxation Accountant 221113 CPA/CA/IPA
Teacher of the Hearing Impaired 241512 AITSL​​
Teacher of the Sight Impaired 241513 AITSL​
Technical Cable Jointer 342212 TRA
Telecommunications Engineer 263311 Engineers Australia​
Telecommunications Field Engineer 313212 Engineers Australia​
Telecommunications Network Engineer 263312 Engineers Australia​
Telecommunications Network Planner 313213 Engineers Australia​
Telecommunications Technical Officer or Technologist 313214 Engineers Australia​
Thoracic Medicine Specialist 253324 Medical Board of Australia​
Transport Engineer 233215 Engineers Australia
Urologist 253518 Medical Board of Australia​
Valuer 224512 VETASSESS
Vascular Surgeon 253521 Medical Board of Australia​
Veterinarian 234711 AVBC
Wall and Floor Tiler 333411 TRA
Welder (First Class) 322313 TRA
Welfare Centre Manager 134214 ACWA/VETASSESS

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