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Sentiment for Australia’s property sector outlook continues to be positive - ANZ

The June ANZ- Property Council Survey indicates that companies are ever more positive regarding the property sector outlook. Confidence continues to be high in New South Wales, whereas Western Australia has recorded a considerable bounce after election. The rising optimism is in spite of the fact that survey respondents throughout all states and industries have reported that funding conditions are tighter and higher interest rates are likely, noted ANZ.

The housing sector’s optimism has not been doused by higher interest rates and tighter funding. Companies have reported a solid outlook for residential property prices. The most critical issue faced by the Federal Government is housing affordability.

There has also been a rise in confidence in the commercial property space, which is led by the tourism sector. The industrial property outlook has rebounded significantly in recent surveys, underpinned by infrastructure construction, while the retail sector has weakened in line with slow spending and intense competition, stated ANZ.

The June quarter survey report indicates a rebounding outlook for the Australian economy and the property market, which is widely in line with the recent flow of data, stated ANZ Head of Australian Economics David Plank.

“We expect economic growth will continue to pick up from here, and return to around 3 percent over the next two years”, added Plank.

However, the likelihood of further growth in house price, along with an already-hot market, is expected to worsen the concerns of housing affordability that are likely to be addressed in next month’s Commonwealth Budget, noted Plank.

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August 23 15:30 UTC Released

BRForeign Exchange Flows*

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3.435 Bln USD

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2.528 Bln USD

August 23 14:00 UTC Released

USNew Home Sales Chg MM*

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-9.4 %

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0.3 %

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0.8 %

August 23 23:50 UTC 487487m

JPForeign Bond Investment

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-145.5 bln JPY

August 23 23:50 UTC 487487m

JPForeign Invest JP Stock

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-302.5 bln JPY

August 24 00:00 UTC 497497m

ARTrade Balance*

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-495 mln $

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-748 mln $

August 24 06:45 UTC 902902m

FRBusiness Climate

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108 %

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109 %

August 24 08:30 UTC 10071007m

GBGDP 2nd Release QQ

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0.3 %

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0.3 %

August 24 08:30 UTC 10071007m

GBGDP 2nd Release YY

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1.7 %

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1.7 %

August 24 08:30 UTC 10071007m

GBBusiness Invest QQ Prelim

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0.4 %

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0.6 %

August 24 08:30 UTC 10071007m

GBBusiness Invest YY Prelim

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0.5 %

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0.7 %

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