Top 5: Finance & property quotes week commencing November 17

By the resi financial blog team, 24 November 2014

Top 5: Finance & property quotes week commencing November 17

It's been a week with growth and investment on the minds of everyone who's anyone. From post-resource boom investment to rental returns, it seems that people are looking to the housing market to boost productivity for the nation.

#1. In a November 18 address to the Committee for Economic Development of Australia, Reserve Bank of Australia (RBA) Governor Glenn Stevens spoke of sources of demand that would continue to see the country's economy expand beyond the resource-related influx of the previous few years.

"As for domestic sources of demand, an obvious contributor is the set of forces at work in the housing sector. Investment in new and existing dwellings is rising. It ought to be possible, if we are being sensible both on the demand management side and the supply side, for this to go further yet and, more importantly, for the level of activity to stay high for longer than the average cyclical experience. A high level of construction, maintained for a longer period of time, is vastly preferable to a very sharp boom and bust cycle."

#2. Speaking to the rental property market, SQM Research Managing Director Louis Christopher highlighted the best and worst capital cities for rental performance around the country.

"Sydney appears to be the strongest rental market right now with asking rents (for houses) up by 6.4 per cent for the past 12 months, though I am expecting rental growth to slow in 2015 due to the increased completion of new stock on the market for that city," said Mr Christopher in a November 18 statement.

#3. Alexandra Heath, Head of Economic Analysis Department at the RBA spoke to the NSW Mining Industry & Suppliers Conference on November 21. In her address she noted one of the primary reasons for decline in the resource sector was in fact the success of mining production and supply.

"The increase in Australia's production capacity has boosted the global supply of iron ore and coal, as has the increase in production capacity in a number of other countries that have responded to the same fundamentals. Much of the fall in iron ore and coal prices we have seen over the past year or so is the result of increasing global supply, but recently there has also been some easing in demand associated with slower growth in Chinese steel production."

#4. On November 23 Prime Minister Tony Abbott made a speech in which he discussed the recent trade agreements struck with China, and how these would benefit the economy and the Australian people moving forward.

"This agreement with China means more growth, more investment and more jobs. It's a better deal for our farmers - particularly for producers of dairy, beef, wine, seafood, grain and horticulture. Industries such as education, telecommunications, tourism, construction and health will all benefit from being able to do business in China far more easily," said Mr Abbott.

#5. In discussing statistics released by the Australian Bureau of Statistics, HIA Economist Diwa Hopkins pointed out that housing has become a key driver of growth in many states.

"The 2013/14 financial year recorded a strong and widespread recovery in residential construction, with six out the eight states and territories enjoying increasing activity. These 2013/14 results follow quite a weak year for residential construction in 2012/13, when seven of the eight states and territories recorded declining levels of activity," said Ms Hopkins on November 21.

Categories: Property Investment