Archive for 'Property Cycles'
Election Year Blues?
Posted on 11. Mar, 2010 by Chris Lang.
It’s not just rising interest rates that the Rudd government will have to contend with, in the run-up to the next election.
The joy of the resources boom restarting brings with it certain unwanted side effects. What you will start to see is wage rate increases; plus the drawing away of materials and equipment, from other […]
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“How Baby Boomers affect
your Commercial Property”
Posted on 10. Feb, 2010 by Chris Lang.
Last week, you hopefully gained a clearer understanding of the timing (and impact) Baby Boomers will have on Residential property, until around 2025.
Most people probably feel all this would have little or no impact on Commercial property.
And for some of you, that might be true. But I suspect there are many Boomers, where the effect […]
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Your Opportunities Moving Forward?
Posted on 21. Jan, 2010 by Chris Lang.
There has been much written already about the global financial crisis.
But in layman’s terms, it occurred as a result of capital imbalances occurring throughout the world. And nowhere more so, than in America.
The principal cause can be found with the high levels of US debt-funded consumption. And in order to better understand this distortion, you […]
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Biggest Economic Threat For Australia
Posted on 13. Jan, 2010 by Chris Lang.
It might surprise you to hear this, however …
A Strong US Recovery
… would probably be the worst thing to happen for Australia in 2010.
If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian dollar from its […]
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Your Handy Economic Clock
Posted on 27. Nov, 2009 by Chris Lang.
Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.
nyway, I came across this rather useful one the other day.
As you’ll see, it is actually a “Multi-asset Investment Clock” — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.
Furthermore, if […]
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How Interest Rates Affect
the Property Markets
Posted on 17. Nov, 2009 by Chris Lang.
If the Reserve Bank (RBA) further increases rates in December, you will start to see the housing market plateau in the New Year. However, this should have little or no immediate effect on the rest of the economy.
n all discussion about Australia’s improving economy and retail spending, there has been little regard placed upon the […]
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Australian Commercial Property
Is Runnning Its Own Race
Posted on 16. Oct, 2009 by Chris Lang.
Unlike the US and Europe, Australia has not suffered a banking crisis. Therefore, our banking system is still capable of providing credit for normal growth.
With the US unemployment rate approaching 10%, this will delay any quick turnaround for the Commercial property sector.
s you would expect, there is a strong correlation between high unemployment, tenancy contractions […]
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Thankfully, The RBA Displayed
The Courage of Its Convictions
Posted on 08. Oct, 2009 by Chris Lang.
Clearly, many households and first home buyers will have reason to complain … but someone had to step up and show leadership. And it certainly wasn’t going to be the Labor Party.
y increasing the official cash rate from 3% to 3.25%, the RBA has signalled its intention to ensure Australia’s financial future remains […]
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Commercial Construction
Outlook Remains Soft
Posted on 07. Oct, 2009 by Chris Lang.
While Australia’s overall business expenditure has remained fairly strong, our Commercial construction and infrastructure outlays are expected to decline by at least 10% this financial year.
BCI Australia is forecasting project construction of some $63 billion 2009-10, which is about $7.7 billion down on that for 2008-09.
In all but for Victoria and South Australia, there was […]
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Keep Your Eye on Inflation!
Posted on 28. Jul, 2009 by Chris Lang.
Australia is supposed to be in the midst of a recession; and yet, underlying inflation is still running at 4% per annum.
If that’s the best we can do … what levels will inflation finally reach, once the economy moves into its recovery phase?
Strong sales have seen retailers cutting prices less than expected. And generally, other […]
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CBD Office Shortage Looming for Melbourne
Posted on 18. Jun, 2009 by Chris Lang.
And Rentals are Set to Rise …
The recent boom period saw prime Office rentals in Brisbane, Sydney and Perth hit the $1,000 per sq metre mark. However, they have fallen dramatically from that peak, since mid-2008
Meanwhile, Melbourne has remained steady at around $750 per sq metre — mainly because most of its new […]
