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Domain: Sydney median house price tops $1.1m, but “affordability improving”

By Leith van Onselen Domain (formerly APM) has released its house and unit price results for the December quarter of 2016, which are presented in the below tables: As you can see, the median house price nationally surged by 3.40% in the December quarter of 2016, driven by a massive 4.70% quarterly rise in Sydney

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Housing finance remains decoupled from CoreLogic index

By Leith van Onselen With the release of the ABS’ housing finance data for November, it is an opportune time to once again plot CoreLogic’s dwelling price series against the total value of finance commitments (excluding refinancings) as measured by the ABS. Note: the ABS’ housing finance data is current to November 2016, whereas CoreLogic’s

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New NZ PM facing immense pressure over housing

By Leith van Onselen Yesterday’s release of the 2017 Demographia International Housing Affordability Survey has stepped-up pressure on New Zealand’s National Government, and new Prime Minister Bill English, to undertake genuine housing market reforms in a bid to restore some semblance of affordability. The latest Demographia report showed New Zealand’s Median Multiple (median house price

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Links 24 January 2017

Global Macro / Markets / Investing: The Global Solar Boom: How Solar Is Finally Moving Beyond Boom and Bust – Fox Risk sharing across the US and Eurozone – VOX How Often Does a Stock Fall 19% in One Day? Not Very Often – WSJ Technology vs. the Middle Class – WSJ Behind Closed Doors At Davos: “Make Elites

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Macro Afternoon

by Chris Becker Please note this is a special Presidential “alternate facts” version of Macro Afternoon. Fully approved by the Krem, err White House. Markets returned full of confidence absorbing President Trump’s record watching inauguration over the weekend, with stocks rallying in allies Japan and Australia while Chinese stocks slumped in shame as a new world leader

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Three theories behind the global productivity slowdown

Cross-posted from The Conversation: There is a wide recognition by economists and policy-makers that “the large differences in income per capita observed across countries mostly reflect differences in labour productivity”. Further, “productivity is expected to be the main driver of economic growth and well-being over the next 50 years, via investment in innovation and knowledge-based

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From towering infernos to leaky homes

By Leith van Onselen Over the past two years, there has been multiple reports decrying Australia’s poorly designed and built apartments. Last year, there were several reports (here, here and here) about how cheap combustible cladding had been used to cover potentially thousands of buildings across Australia, which in November 2014 sent a Docklands building

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There are better options than raising the Medicare Levy

By Leith van Onselen There is renewed speculation that the Government could raise the Medicare levy to fund the health budget. From The Age: Doctors believe the Turnbull government could be contemplating another increase in the Medicare levy. The Australian Medical Association has used its pre-budget submission to plead with the government to return any

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East Coast apartment boom drives inner-city schools shortage

By Leith van Onselen The lack of planning and foresight to cope with the never-ending population (immigration) influx into Australia’s big cities never ceases to amaze. The latest example of negligence comes from Brisbane, where the unprecedented boom in high-rise apartments (see next chart) has driven a shortage of inner-city school places. From The SMH:

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China FTA failing to deliver benefits as promised

By Leith van Onselen From The Australian today comes the shock horror admission that the China-Australia Free Trade Agreement (ChAFTA) is failing to deliver benefits as promised by the Department of Foreign Affairs and Trade (DFAT) and the Coalition Government: Australian farmers and food processors lined up to support the China-Australia free trade agree­ment in

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2017 Demographia Housing Affordability Survey

By Leith van Onselen The 13th Annual Demographia International Housing Affordability Survey has just been released and, once again, it ranks Australia as having one of the most expensive housing markets out of the countries surveyed. This year’s report assesses 406 urban markets in nine countries: Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, Singapore,

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NZ housing values surge past $NZ1 trillion

By Leith van Onselen With the 2017 Demographia International Housing Affordability Survey showing New Zealand with the second most expensive housing market out of the nine nations surveyed: We shouldn’t be surprised to see that the total value of New Zealand’s housing stock has also surged through $NZ 1 trillion for the first time, growing

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NSW, VIC parasites continue to lead ponzi economy

By Leith van Onselen CommSec has released its latest State of the States report, which once again ranks New South Wales and Victoria on top due largely to a combination of strong population growth, housing, and debt-fueled consumption: Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; business

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While Trump officially kills TPP, Turnbull continues farce

By Leith van Onselen As promised, one of President Trump’s first acts on taking office has been to kill-off the Trans-Pacific Partnership (TPP) trade deal. From The ABC: The new US administration of President Donald Trump has said its trade strategy to protect American jobs would start with withdrawal from the 12-nation Trans-Pacific Partnership (TPP)

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Links 23 January 2017

Global Macro / Markets / Investing: How the world welcomed president Donald Trump – Quartz Buy, George? World’s largest fund manager hires Osborne as adviser – The Guardian ’Don’t damage trade’, emerging market leaders tell Trump from Davos – Reuters Disillusioned in Davos – Larry Summers The Illusions Driving Up US Asset Prices – Project Syndicate Don’t Blame Davos Man

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Weekend reading 21-22 January 2017

Global Macro / Markets / Investing: The innovation network – VOX Do Regulations Really Kill Jobs? – The Atlantic Soros Says Markets to Slump With Trump, EU Faces Disintegration – Bloomberg Debunking the NAIRU myth – FT Alphaville How Hedge Funds Get Rich (Hint: It’s Not Their Returns) – Of dollars and data How statistics lost their power – and

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Macro Afternoon

by Chris Becker Chinese GDP surprised on the upside, with mainland stocks rising alongside Japanese bourses even as the USD  drops against Yen. Uncertainty about the Orange Oligarch’s climb to power tonight in the US is lifting gold while Australian stocks are selling off as traders position for a wait and see Monday. The Shanghai Composite

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Australia needs to invest in tourism if it wants the boom to continue

Cross posted from The Conversation by David Beirman Senior Lecturer, Tourism, University of Technology Sydney Tourism has been the good news story for Australia’s economy over the past year. The latest numbers show 8.2 million international tourists visited Australia in the year to November. This is an 11.4% increase on the year before. Domestic tourism also