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Vol 11. No.36

Economic Overview

	Current	+/-	Movement
$AUS/$US	90.04	+1.04
Cash Rate	3.75	Steady
90 Day Bill	4.17	+0.01
10 Year Bond	5.580	+0.020
ASX 200	4717.5	+82.4

NSW Property

Sydney Metro transaction update (AFR Pg.52) 

• The NSW government will retain ownership of $120 million worth of Sydney CBD office buildings that were acquired last month to provide construction access and entrances to the proposed network for the now defunct $4.8 billion Metro rail project.
• All transactions that were close to being finalised will now be null and void.
• Last week City Freeholds acquired a $106 million office tower in Hunter Street after settling on 12 Castlereagh Street with Sydney Metro.
• A new transport plan will replace a metro station at Barangaroo with a new station on the light rail link. 

Queensland Property

Brisbane leasing deal (AFR Pg.55)

• Q-Rail will lease up to 15,000m² in increments in ING Office Fund’s building in Ann Street, Brisbane. It is the biggest leasing deal in Brisbane over the last 12 months.
• Rent is between $550/m² and $589/m², with a 25% incentive.

Victoria Property

Southbank development update (AFR Pg.54)

• Approximately $1.9 billion worth of new development is either planned or under construction in Southbank.
• Central Equity is planning a 43-storey residential tower at 141 – 155 City Road, Southbank.
• The $125 million development will comprise of 513 apartments, mostly 1 or 2 bedrooms.
• The 2 lots totalling 2,527m² were purchased for $13.5 million ($5,342/m²), a new record for a development site in the area.
• Wadhawan Holdings also has plans to develop a $500 million hotel/apartment building in the area.

National Property

Housing affordability update (AFR Pg.54)

• The Housing Industry Association/Commonwealth Bank of Australia housing affordability index declined by 18.4% in the December quarter and 22.3% over the year.
• The quarterly result was the worst fall in housing affordability recorded. The decline is attributed to 3 consecutive interest rate increases, capital growth and the removal of the majority of first house buyer incentives.
• The largest declines were in Sydney, Brisbane, Hobart and Canberra.
• A “moderate housing recovery” is forecast for the year with approximately 152,000 dwelling starts, well short of the 190,000 dwellings that Australia is said to need annually.
• According to the ABS, since May 2009 the proportion of first home buyers in the market have declined from 29.5% to 21% as at December.

Childcare centre update (AFR Pg.54)

• Australian Education Trust is selling $40 million worth of child care assets that were previously occupied by ABC Learning Centres.
• In late March 30 properties, with average lease terms of 10 years, will be auctioned.
• GoodStart, an amalgamation of 4 charities, is set to revive the ABC Learning Centres brand and pay $100 million for 678 childcare centres previously leased to ABC Learning.