Exorbitant land costs are the fundamental driver behind Australia’s expensive housing. During 2023-24, the residential land values that underpin the housing market grew by 8.8%, reaching a valuation of $7.7 trillion. Over the 35 years to 2023–24, residential land values skyrocketed from 1.1 to 2.9 times Australia’s GDP. In contrast, aggregate structure values only increased
More pain from The Market Ear. After the China/US trade talks JPM’s great derivatives team dives in: “The China-US trade talks in Geneva have been more positive than anticipated and have resulted in a normalization of the volatility spread between the S&P 500 and European indices. We recommend buying SPX short-dated calls, fully funded by selling
New Zealand experienced one of the world’s biggest house price booms over the pandemic, with prices soaring by around 30%. As a result, the 2022 Demographia Housing Affordability Survey ranked New Zealand as having one of the world’s most expensive housing markets, with a median multiple of 11.2 in 2021. New Zealand’s market has since
DXY is taking a breather. That could not help the AUD. No lead boots. Gold up. Metals down. Big miners still look fugly. EM stocks hit resistance. Junk says no problemo. Yields eased. Stocks mixed. TS Lombard sounds about right today. The US-China truce removes major USD downside risk. The significant de-escalation in trade tensions
Australian households are experiencing their longest recession in generations. The Q4 national accounts released in March showed that real per capita home consumption declined for the eighth consecutive quarter. A sharp dip in household incomes is driving the decline in consumption. As shown below, as of Q4 2024, real per capita household consumption had fallen
It’s a new and improved Albo with the same old message. “We had progressive patriotism,” Albanese said of the Labor campaign message. “We spoke about doing things the Australian way, not looking towards any other method or ideology from overseas. “At a time where there’s conflict in the world, where people are often divided on
Cotality (formerly CoreLogic) reported that the total value of Australia’s housing stock was $11.3 trillion as of April 30, 2025, with the average home worth exactly $1 million. New research from Cotality shows that a record 34.4% of homes across the nation were valued above $1 million in April, with 41.6% of capital city homes
The Q4 national accounts release from the Australian Bureau of Statistics (ABS) revealed that households had suffered the largest decline in real per capita household disposable incomes on record, down around 8% from the mid-2022 peak. New data from the OECD shows that Australia also recorded the largest decline in real per capita household disposable
AUD/USD EUR/USD USD/JPY GBP/USD Gold WTI Brent Australia 200 US S&P 500 UK 100
The post Macro Afternoon: 15 May 2025 appeared first on MacroBusiness.
Alex Joiner from IFM Investors has published the following chart showing the sharp reversal of interest rate pricing in the futures market. After President Donald Trump announced his ‘Liberation Day’ tariffs last month, the futures market had forecast five more interest rate cuts this year and a cash rate of around 2.85% by the end