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Vol 12. No.20

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	100.30	+0.84
Cash Rate	4.75	Steady
90 Day Bill	4.90	-0.05
10 Year Bond	5.508	+0.011
ASX 200	4752.1	-1.8

New South Wales Property

• Eureka Funds Management has purchased 55 Clarence Street in Sydney for about $83.2 million from Allianz Australia.
• Eureka is understood to have bought the building on behalf of the Aria Property Fund.
• The tower spans 14,962 square metres of office space over 17 levels and is 98% leased to tenants including AAPT, Allianz Australia and Gray & Perkins Lawyers.
• Based on the current income, the sale price reflects an initial yield of 8.4%.
• The area will benefit from the development of Barangaroo as the building is positioned near its entrance.

National Property

• Latest figures show house price growth has flattened due to tight monetary policy.
• Official figures from the Australian Bureau of Statistics show slight house price growth in all the capital cites and strong price falls in Perth.
• The figures found the weighted average house price of eight capital cities increased by 0.7% in the three months to December after falling slightly in the previous quarter.
• Prices in Canberra, Sydney and Melbourne were the most resilient while there was a strong quarterly fall in Perth of 3.2%.
• Analysts said stretched affordability, a steady stream of interest rate rises and the spectre of further increases would probably keep a lid on prices for the rest of the year.
• The data preceded the Brisbane floods and the rate rise on Melbourne Cup day last year, which could weaken the market.