|
Coronavirus cases are increasing on our construction sites. $$PLAIN_TEXT_PREVIEW$$
|
Concern for Construction Workers Amid Coronavirus
|
|
The Urban Developer
Construction is still an essential service amidst the COVID-19 pandemic. But with cases on construction sites rising, it is uncertain how much longer this will last. Read more…
|
|
Debuilt Property provides development & monitoring support to investors and financiers. Visit our Financier.Investor Services page to find out more about our services.
|
|
KEY HEADLINES Melbourne’s prestige properties still selling despite coronavirus fears The Australian, Sat 04/04/20
Crisis hits home for investors The Australian, Sat 04/04/20
Buyers still feel at home in online market The Age, Mon 06/04/20
Planning Minister says no to controversial rezoning The Age, Tue 07/04/20
Estate agents ‘abused’ as strike grows The Age, 08/04/20
Tenants being shown the door The Age, Thu 09/04/20
Alarm raised on price drop as listings surge AFR, Wed 08/04/20
Crisis brings back old time matchmaking AFR, Wed 08/04/20
|
|
The Australian reported that according to SQM Research residential property prices could see a 30% price plummet if coronavirus restrictions remain for a prolonged period. SQM predicts that if normal business returns by the end of May then confidence will return. But this is unlikely and prices will probably continue to fall. (Property prices ‘could fall as much as 30pc’ in overvalued larger markets of Sydney and Melbourne – Mackenzie Scott, 07/04/20)
The Urban Developer looks at last week’s auction results in ‘Auction Withdrawals Reveal Cracks in Housing Market’.
The AFR reported that residential landlords are facing another setback – insurers have refused to cover losses resulting from rent reductions agreed with tenants. Major insurers, like Aon and CommInsure, have stated that cover will not be provided because they are treating rent reduction agreements as foreseeable events. (Landlords ‘freaking out’ as insurers clip rent cover – Duncan Hughes, 09/04/20)
The Conversation analyses the current rental situation: Rents can and should be reduced or suspended for the coronavirus pandemic.
|
|
KEY HEADLINES PM’s please to commercial property landlords falling on deaf ears AFR, Sat 04/04/20
Business rents ‘to be cut in line with losses’ The Australian, Sat 04/04/20
Retailers, landlords ‘to share the pain’ The Australian, Sat 04/04/20
Deal flow slows amid virus crisis AFR, Mon 06/04/20
Dexus takes a seat in Collins Street’s Rialto AFR, Mon 06/04/20
Japanese group proceeds with $72m office purchase AFR, Mon 06/04/20
Co-working crumbles as startups avoid hot desking The Age, Tue 07/04/20
Code offers relief to commercial tenants AFR, Wed 08/04/20
Fine print invites big retail to rental relief party AFR, Wed 08/04/20
Virus will slow office leasing rates AFR, Wed 08/04/20
GPT takes $694m valuation hit The Age, Wed 08/04/20
|
|
The Australian reported that Queensland has introduced a $400m land tax package for commercial landlords who are struggling as a result of the thousands of tenants unable to pay rents due to coronavirus. Queensland will offer a three-month rebate of land tax for 2019-20 and a further three-month deferral of land tax for 2020-21. This is only available for landlords who agree to provide rent relief to tenants. NSW and Victoria are expected to follow suit with similar assistance packages. (Coronavirus: Queensland’s $400m land tax package for stressed landlords could spark national chain reaction – Ben Wilmot, 09/04/20)
Offices The AFR reported that the impact of COVID-19 is adding significant pressure to an already-declining office leasing market. The overall take-up of space, or negative net absorption, has worsened in Sydney, Melbourne, Brisbane and Perth with companies moving out of the CBD. (Coronavirus pressure slowing office leasing – Ingrid Fuary-Wagner, 07/04/20)
The Age reported that co-working office spaces are also struggling, with one provider reporting they currently have zero members and have had to close the doors for good. This follows the federal government’s instructions to stay home unless absolutely necessary. (Co-working crumbling: Start-ups abandon hot desking – Emma Koehn, 07/04/20)
Retail Sector The Age reported that retail rents are expected to decline up to 20% once shopping centres reopen. This prediction follows major landlords agreeing to tenants about a raft of different rent relief packages. (Retail rents tipped to fall 20 per cent as virus takes its toll – Carolyn Cummins, 04/04/20)
|
|
Key Headlines: Non-banks clamp down on new loans The Australian, Mon 05/04/20
ASIC allows interest-only loan switch AFR, Tue 07/04/20
Warning mortgage holders at risk The Age, Fri 10/04/20
|
|
The AFR reported that due to COVID-19, Australia’s economy will contract by 3.9% this calendar year and unemployment will peak at 9%; and 2021-22 will see a contraction of 1.5%. Two straight quarters of negative growth are widely regarded as the definition of recession, something Australia hasn't experienced since 1991. It won't be until the end of 2021 that the economy will move back into growth. (Economy to contract by almost 4pc in 2020 – Sarah Turner, 06/04/20)
Lending The AFR reported that prior to the COVID-19 outbreak, mortgage lending in Australia had dropped for the first time in nine months. Whilst first-home buyer loans increased, owner occupiers and investor loans saw 1.7% and 1.9% declines respectively. (New home loans fell even before COVID-19 hit – Michael Bleby, 08/04/20)
To the contrary, The Urban Developer believes that the coronavirus has not impacted lending in Australia: Covid-19 Impact Yet to Hit Lending.
|
|
The AFR reported that construction work has almost dropped to a complete standstill, with commercial building activity at its lowest in seven years. Apartment building also saw a 4.8% decline last month, due to dampened client confidence, increased risk aversion and lower investment demand. (Construction drops as COVID-19 hits private projects – Michael Bleby, 03/04/20)
The Age reported that the number of cranes in Sydney and Melbourne is declining. According to the RLB Crane Index, cranes have dropped 5% nationally. This is assumed to be the result of a freeze on pre-commencement activities because of uncertainties caused by the pandemic and associated government restrictions. (Cranes no longer dominate city skylines as construction declines – Carolyn Cummins, 08/04/20)
|
|
Steel and concrete steps cut through facade of Stairway House by Nendo
|
|
dezeen
This three storey, housing three generations of a family, has a magnificent faux staircase running through it. The Tokyo home has been designed to unite each storey physically, but maintaining privacy. Read more on dezeen…
|
|
You have received this email as a client, friend or due to a past association. If you would prefer not to be included in our email communications please unsubscribe below.
|
|
|
|
|
