Everything worth knowing in less than a minute:
Australia is in the middle of a housing boom, but it’s all about the high-rise baby. Dwelling approvals for 4+ stories are through the roof. Watch this space. If an oversupply will open up anywhere it will be here first…
Foreign Buyers go next level
FIRB-approved applications for foreign investment in housing doubled (+102% y/y) in 13/14 to a record high $34.7bn. Within this, the majority 78% share was directed to new housing at $27.2bn (spiking 152% y/y) – of which a 79%+ share was concentrated in NSW and Victoria alone.
And my guess it has a lot to do with the boom in high-rises above…
The unemployment rate edged up to 6.2%. Still healthy. Going nowhere. Compare it with the US and see the bullet we dodged.
Retail Trade Solid
Retail trade was up 4.5% over the year – that’s a pretty tidy result. Driven by spending on household goods, which tends to reflect household confidence.
Banks cop a bashing
Bank stocks were hit during the week, with weaker profits than expected (though still pretty freakin massive)…
… and rumours that banks are planning voluntary caps on lending to investors to avoid APRA getting heavy handed with them.
The Budget Cometh
Everyone’s watching Canberra this week ahead of the budget. Rumours are Hockey’s been sidelined and Cap’n Tony has chaired every meeting.
The last projections we saw expected a feeble return to surplus in 2020. That was before the collapse in commodity prices. This one must be worse, but will probably see a similar projected return to surplus…
RBA gets all social media-y
The RBA has launched decisively into the 21st Century, and has started publishing ‘infographics’ on the state of the economy. Share with your friends.
The Thirsty Country
Stats show that alcohol consumption (per person) in Australia has fallen to a 50-year low.
Beer consumption has been falling for a long time now, but in recent years, wine has also started falling (though I personally feel I’ve been pulling my weight).
Sometimes I wonder what is happening to this great country of ours.
Have a great week everyone.