Get the appTom Offermann agents sold two of three properties offered at auction on the weekend, despite heavy rain across South East Queensland. Erica Newton sold a Noosaville penthouse to a local buyer. The week before, she sold a Sunrise Beach house, the legacy of Kenneth and Wendy Heinze, for $3.6m, with proceeds going to four charities. The Real Estate Institute of Queensland says 48 of 50 tracked regions were in the tight rental range of 0 to 2.5 percent in the September quarter.
Small business owners say rising costs and a growing number of policy changes are making it harder to operate. Builder Steve Bright says he now spends more than half his time on paperwork and has hired staff to handle the changes. Credit reporting agency CreditorWatch says serious arrears reached an 8.5-year high in September. Its chief executive warns business insolvencies could rise next year. Small Business Minister Anne Aly says the government is delivering billions in business tax relief.
The Coalition says it would pay for its proposed income tax cuts by scrapping $31bn worth of Labor policies. Opposition Leader Angus Taylor released costings for the Tax Back Guarantee, which ties income tax brackets to inflation. Typical workers would receive $250 in the first year, rising to $1,000 in the fourth year. The plan targets climate programs, including the Net Zero Economy Agency and electric vehicle concessions, and Build to Rent tax breaks.
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Get the appOnly one in five Brisbane properties sold under the hammer over the weekend, according to Realestate.com.au data. The city's preliminary clearance rate was 22 per cent, down from 30 per cent a week earlier. Regional Queensland fell to 18.9 per cent. Realestate.com.au economist Luc Redman said clearance rates are likely to stay low until sellers lower price expectations or demand returns. A riverfront Newstead penthouse sold for $5.825m, the biggest Brisbane auction sale, while a Daisy Hill property sold for $2.3m.
Global shares edged up on Monday as oil prices eased from six-month highs, ahead of a week of central bank meetings and corporate earnings. Oil fell about two per cent to $US114.60 after reports that Qatari mediators were in Tehran in an effort to ease tensions. The Houthi group in Yemen said it had attacked Saudi Arabia's East-West crude oil pumping stations and Riyadh airport, though Riyadh did not immediately confirm this. Markets expect the US Federal Reserve to hold rates steady this month but price in a likely rate rise in December.
US share markets closed lower on Friday, with the Dow Jones Industrial Average falling 1.25 per cent to 52,209.16 points. Technology shares steadied to end a turbulent week for the AI trade. Investors are looking ahead to a busy run of company results, including from Alphabet, Microsoft and Amazon, whose spending plans will be closely watched. Oil prices rose after Houthi attacks in Saudi Arabia raised concern about energy supplies. The Federal Reserve is expected to keep interest rates steady on Wednesday, with investors watching for hints about a possible rate rise in December.
Australian share markets reversed an early steep fall to finish slightly higher, with traders now pricing in a chance above 60 per cent that the Reserve Bank lifts interest rates at its meeting next Tuesday. Oil prices pulled back from Friday's jump but still sit at elevated levels. Mining stocks gained as commodity prices rose. The live coverage also gathers the day's business headlines and analysis from specialist reporters, and carries a note that it does not constitute investment advice.
A Sydney mother of two says another interest rate rise could force her to sell the family home she has lived in for nearly 26 years. Vanessa Merryweather, speaking to 60 Minutes, said she earns just over $900 weekly while her mortgage repayments sit near $800. Covid hit her business, and later bowel cancer and her daughter's lymphoma drained her savings buffer. Reserve Bank chief economist Sarah Hunter acknowledged the strain but said higher rates remain necessary to control inflation.
Economists at Citi expect underlying inflation to rise about one per cent in the September quarter, above the Reserve Bank's August forecast. They say the data may matter less than comments from deputy governor Andrew Hauser, which suggested a rate rise is likely. Market pricing for a November increase rose above 50 per cent after his remarks. NAB still expects the cash rate to hold at 4.6 per cent, forecasting inflation to return to target as fuel cost pressures fade.
Regional South Australian house prices are still rising, even as Australia's housing market recorded its steepest quarterly drop on record. Domain data show prices outside Adelaide rose 19 per cent over the past year, with a median of $595,000. Every capital city has seen median house prices fall for the first time in 15 years. An economist expects regional areas to be the last to slow, and forecasts six to 12 months of further price falls before a long-term recovery. Real estate agents report enquiries have dropped sharply following a recent interest rate rise.
First-home buyers have been locked out of 169 previously affordable Queensland property markets since the federal 5 per cent deposit scheme was expanded a year ago. An analysis of Realestate.com.au data found that 852 of 890 house and unit markets have risen in value. Deagon houses jumped 31.2 per cent to $1.187 million. Since October, new Queensland mortgage lodgements have fallen 30 per cent, with first-home buyer applications down 18 per cent, according to Loan Market. Buyer's agent Lauren Jones said rising interest rates and living costs have cut borrowing power, leaving young buyers largely absent from the market.
A first home buyer paid $1,305,000 at auction for a two-bedroom apartment in Alexandria, $55,000 above the reserve. The converted warehouse apartment at 2/145 Belmont Street drew 30 people and five active bidders. Across Sydney, 561 properties were scheduled for auction this week. In Mosman, a five-bedroom home at 36 Medusa Street passed in at $9.85 million after only one registered party failed to bid. In Huntleys Cove, a downsizer paid $1.97 million for a ground floor apartment, $20,000 above reserve.
Catherine and Aaron McArlein bought their first home in Springfield Lakes, south of Brisbane, for $1.28 million after a four-year search. The couple waited for prices to level off rather than stretch their budget, and found an off-market property through a local real estate agent after five rejected offers. The four-bedroom home has a pool, spa and a backyard for their dog. Mortgage broker Mark Winter urged buyers to keep saving and to ensure repayments remain manageable if interest rates rise further. The Reserve Bank of Australia recently lifted rates to a 15-year high of 4.6 per cent.
Treasurer Jim Chalmers has signalled that officials are downgrading economic forecasts ahead of the December mid-year budget update, pointing to slower growth and higher unemployment. Oil prices have climbed to US$113 a barrel after a broadening Middle East conflict, and petrol has risen by 60 cents a litre since the US and Israel attacked Iran. Westpac analysts have outlined a scenario in which oil could reach US$150. Chalmers has said the government has limited control over these pressures, and that any response to one problem could make another worse.
New research from AFMS Group shows regional South Australia gives buying couples the greatest purchasing power. Couples could afford to buy in every suburb of outback South Australia, where the median price is $428,083. In Adelaide's central and hills region, couples can buy in just 55 per cent of suburbs. Realestate.com.au senior economist Eleanor Creagh said prices had fallen for a sixth month in a row, while loan lodgements in South Australia have dropped 25 per cent since January, according to Loan Market.
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Get the appParents who act as guarantors for a child's home loan could be tied to it for nearly 14 years if house prices fall 10 per cent, according to new Primara Research data. A guarantor is normally released once the loan balance falls to 80 per cent of the property's value. REA Group says prices have already dropped 3.3 per cent over six months, driven by rising interest rates and tax changes. Higher rates have also reduced borrowing capacity, making it harder for first-home buyers to enter the market.
Treasurer Jim Chalmers has warned of an economic slowdown and rising unemployment. Speaking at a Sydney business forum, he said higher interest rates and inflation were likely to soften growth and push unemployment slightly higher. He linked the pressure to the wars in Ukraine and Iran, which he said were raising global inflation and borrowing costs. Chalmers said private sector activity was now driving growth, while public demand had eased. Financial markets currently put a 62 per cent chance on a rate rise on Melbourne Cup day in November.