National Auction Markets Easing

With a surge of sellers keen to take advantage of strong buyer competition, the home auction markets reported lower clearance rates and clear signs that the white-hot market is beginning to cool.

A total of 2401 homes were reported as listed for auction on Saturday, May 15, which, although lower than last weekend’s May record 2563 listings, provided plenty of choices for buyers.

The national average weekend clearance rate was down on Saturday, falling from 83.1% to 80.9% – the lowest result since the 77.7% recorded on January 30.

This is the fourth consecutive weekend that clearance rates have fallen and is well below the peak national average of 88.5%, recorded on March 5.

Sydney hosted another incredibly busy weekend of auctions, with 9990 Sydney auctions reported on Saturday –  just below the previous weekend’s May record 1014.

With a larger volume of auctions, the Sydney clearance rate fell to 82.9%, down on the previous weekend’s 83.5%, and the fourth consecutive weekend of falling rates.

Sydney recorded a median price of $1,641,000 for houses sold at auction at the weekend, just below the $1,650,000 reported over the previous Saturday, but 16.4% higher than the $1,410,000 recorded over the same weekend last year.

Melbourne again saw a surge in auction volumes, which pushed the clearance rate down to a year low reporting a clearance rate of 78.6%, well below the 80.7% recorded the previous weekend.

A total of 1149 homes were reported listed for auction in Melbourne on Saturday, just below the 1248 May record auction the previous weekend and well ahead of the 82 auctioned over the same weekend last year.

Melbourne reached a median price of $1,093,000 for houses sold at auction on the weekend, which was 4.1% higher than the $1,050,000 recorded over the previous weekend and up 8.9% on the 1,002,944 recorded over the same weekend last year.

The Global House Price Boom Could Haunt The Recovery From Covid-19

The year of the pandemic saw the largest increase in global house prices since the U.S. housing boom of the mid-2000s. And there is no sign the rally is coming to an end.

That provides immediate economic support for the global recovery from Covid-19. But a prolonged house price upswing would mean big new problems for both financial stability. And it could result in economic strife if middle-class citizens accustomed to a one-way housing bet suddenly find the rug pulled out from beneath them down the line.

House prices rose by 4.91% across 16 economies monitored by the Federal Reserve Bank of Dallas last year, the sharpest increase since 2006. The move was large by the standards of a normal year—but explosive in the context of a global economic contraction of around 3.3%.

And the trend shows little sign of abating. The U.S. housing market is millions of homes short of buyer demand. Prices have climbed in places as varied as the eurozone, South Korea, Australia, New Zealand and Canada.

Booming prices reflect a major difference between the liftoff from the financial crisis of 2008 and the nascent post-pandemic boom. The financial crisis emanated from a fragile, undercapitalized banking sector: The obvious postcrisis response was to lend much more conservatively. But at the beginning of last year, banks were far less overextended and, with greater government support, were much more rapidly able to pass on interest rate cuts to borrowers.

At the same time, banks are far more exposed to housing markets than they once were. Across 18 advanced economies, mortgage lending has grown from around a third of total bank lending in 1960 to very nearly 60%. The financial crisis seems to have only been a brief speed bump in this secular trend.

The experience of countries that didn’t have a major banking crisis in 2008 shows what could happen on a far larger scale now. Most countries with large run-ups in household debt during the last decade—China, South Korea, Thailand, Canada and Sweden—were places where banks didn’t suffer in 2008. And rather than the brief, one-off increase in leverage of the kind many analysts expect following the pandemic today, household borrowing climbed continually over the following decade.

Many such countries have attempted to slow down rapid increases in house prices. The Korean government has enacted dozens of individual tweaks to tax and lending regulations. The latest Canadian federal budget announced a tax on vacant and underused property owned by foreigners, following existing levies in Vancouver and Toronto. So far, few measures have had an impact large enough to stall the boom.

Earlier this year, Swedish central bank governor Stefan Ingves compared the household debt situation to sitting on a volcano. The analogy is apt, given how sensitive the health of economies is to increased leverage among households in particular. Economists Atif Mian, Amir Sufi and Emil Verner have published research demonstrating that burgeoning household debt tends to slow down economic growth.

That’s not to say there’s nothing to be done. There have been a small number of successes in controlling and preventing house price booms to note. They bear much closer examination for policy makers in the rest of the world.

Japan’s case is the most obvious. The country’s lack of zoning restrictions and rent controls are regularly credited with the country’s flat home prices, particularly in Tokyo where the total population is still increasing. All the same, making fair international comparisons is difficult because interest rates have been so much lower than other parts of the world for so much longer, and overall economic growth has been so weak.

According to a study published in the Journal of Housing Economics in 2018, Singapore’s flurry of efforts to cool house prices between 2009 and 2013 also seems to have helped to stall the country’s buoyant house price growth. The measures included higher taxes on home-flipping, higher deposit requirements for second-time buyers, longer residential loan terms, and caps on the amount of a borrower’s income that could be spent on home loan repayments. But Singapore is also an example of how difficult such progress is to defend: Prices jumped to a new record in the first quarter of the year. And Singapore’s market is unique in other respects—the lion’s share of housing is publicly developed for Singaporeans to purchase, and homeownership rates are among the highest in the world.

There are other areas to look at. Outright taxes on the value of houses, the land beneath them, or both are popular with economists but have yet to find their way into public policy in most parts of the world. Even without such radical steps, fixing other positive biases housing receives in tax systems around the world would be a good start.

Dealing with an asset that is a totemic symbol of middle-class security and the main source of household wealth but is also a major financial stability risk is an unenviable task for policy makers.

But with many parts of the world already in the foothills of a new house price boom, it’s an issue that must be considered urgently if they want to avoid the mistakes of the past.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 8, 2021

Prestige Property: 32 Becker Place, Mount Ommaney, QLD

A suspended concrete tri-level glass and stone mansion perched on the hill in Mount Ommaney, Brisbane, is one of the city’s most elevated waterfront properties.

Boasting panoramic views of Brisbane River, as well as distant mountain range views of Cunningham’s Gap, comes this 5-bedroom, 5-bathroom, 12-car parking pile spread across a secluded 2858sqm location.

Inside, a three-storey central void is reminiscent of five-star international hotels – giving an immense sense of space, further elevated by soaring panes of glass and a sweeping circular staircase. Drawing the eye in once more is a stone-clad internal lift that services all floors.

The top level – facing the river – sees the master bedroom, complete with ensuite, walk-in-robe, and nearby study or nursery. The master bedroom is surrounded by private rooftop deck.

The middle level is the core of the home, with the living, dining and kitchen space all located here. The kitchen boasts a quartz island bench and butler’s kitchen alongside a powder room. A custom-built, spacious bar – made of French Oak – which opens out onto a spacious deck is ideal for drinking in the views.

Also on the middle level is the children’s wing – featuring three bedrooms, each with individual balconies. One enjoys an ensuite, while the other two share a bathroom.

The lower level also homes a 10-seat, 3- tired French-inspired cinema, replete with a cocktail cabinet and games table area.  Further, a custom-built Alpine stone bar and backs ono an enormous rumpus room with a full-sized lounge and pool table.

Also on the lower level is a bedroom which acts well as a guest room. Also here is another luxurious bathroom.

The lower level also grants access – via stacking doors – to the alfresco entertaining area complete with magnesium infinity pool, 8-seater spa and outside pool house with shower and toilet.

Located 25-minutes to Brisbane’s CBD and an hour’s drive to the Gold Coast, the grand residence enjoys the conveniences of Mount Ommaney without forgoing its relaxed lifestyle.

The listing is with NGU Real Estate Toowong’s Emil Juresic (+61 481 601 793), POA. ngurealestate.com.au

20 Perth Suburbs Grow By 10% Or More This Year

As an indication of just how hot the property market is right now across Australia’s capitals; 20 Perth suburbs have recorded a median house sale price growth of 10% or more in 2021.

According to Real Estate Institute of Western Australia (REIWA) President Damian Collins, those figures have met or surpassed forecasting for 15% price growth in Perth by the end of the 2021 calendar year.

“A total of 20 suburbs have seen their median house sale price increase by 10 per cent or more since the start of the year.

“Bicton has experienced the strongest price growth in the first four months of the year, with its median house price increasing 20 per cent to $1.14 million between 31 December 2020 and 30 April 2021. This was followed by North Beach (up 17 per cent to $1.05 million), Sorrento (up 16 per cent to $1.118 million), and Applecross (up 15 per cent to $1.79 million),” Mr Collins said.

The data, courtesy of reiwa.com, reveals that growth suburbs come from both sides of the curve with nine suburbs beneath Perth median house sale price of $508,000 and 11 above – eight of those in the $1 million-plus price range.

“The recovery of the market is widespread across Greater Perth. Six to eight months ago it was mainly the higher end of the market showing strong growth, but now we are seeing movement across the board,” Mr Collins said.

See the full list of suburbs below:

SUBURB MEDIAN HOUSE SALE PRICE DEC 2020 MEDIAN HOUSE SALE PRICE APR 2021 PERCENTAGE CHANGE
1. Bicton $950,000 $1.14 million 20%
2. North Beach $900,000 $1.05 million 17%
3. Sorrento $960,000 $1.118 million 16%
4. Applecross $1.56 million $1.79 million 15%
5. Claremont $1.503 million $1.7 million 13%
6. Medina $230,000 $260,000 13%
7. Maddington $283,500 $320,000 13%
8. Palmyra $635,000 $715,000 13%
9. Coodanup $292,550 $329,000 12%
10. Attadale $1.165 million $1.3 million 12%
11. Parmelia $247,000 $275,000 11%
12. City Beach $1.8 million $2 million 11%
13. Wembley Downs $975,000 $1.08 million 11%
14. Como $850,000 $940,000 11%
15. Darlington $620,000 $685,000 10%
16. Orelia $240,000 $265,000 10%
17. Redcliffe $399,000 $440,000 10%
18. Bertram $335,000 $369,000 10%
19. Brookdale $252,000 $277,500 10%
20. Girrawheen $300,000 $330,000 10%

Alibaba’s US$2.8 Billion Fine Isn’t its Only Problem

Chinese regulators recently slapped a US$2.8 billion fine on Alibaba. But the company actually has a larger problem: maintaining its lead over the competition.

The Chinese e-commerce giant reported an operating loss of $1.2 billion for the quarter ending in March. The loss was mostly because Alibaba booked the $2.8 billion fine for anticompetitive behaviour in that quarter. Excluding the fine, Alibaba’s operating profit would have risen 48% from a year earlier. Regulators say the company forced merchants to sell goods exclusively on its platform instead of those of its rivals, in a practice called er xuan yi, meaning “choose one out of two.”

It was a difficult year for Alibaba regulator-wise—its finance affiliate Ant Group saw its initial public offering derailed—but it has been a great year for business. Alibaba’s e-commerce and cloud businesses benefited from the pandemic. Revenue last quarter grew 64% from a year earlier. Partly that was due to the addition of Sun Art, a supermarket chain Alibaba acquired last year, but even excluding that, its sales grew 40%.

But the company needs to invest more to fend off the competition. With the latest regulatory scrutiny, it might also need to spend more to keep merchants happy. The company’s adjusted earnings before interest, taxes, depreciation and amortization, which excludes the one-off fine, grew only 18% year-over-year—implying shrinking margins. Alibaba has been putting money into food delivery and grocery e-commerce. The latter in particular faces strong competition from others as all Chinese tech giants see this as a chance to get their hands on relatively untapped rural areas. The business is unlikely to be profitable in the near future.

Apart from usual rivals JD.com and Pinduoduo, Alibaba could face competition from Tencent. Tencent’s WeChat has increasingly become a platform for shopping through its mini-programs, basically apps within the chat app. Merchants and even e-commerce platforms like JD.com can do their businesses through these mini-programs. Tencent said in January gross merchandise sales for physical goods on mini-programs last year grew 154% from a year earlier, without indicating the actual amount.

Live-streaming e-commerce is another area that is growing fast. Kuaishou and Douyin, the Chinese version of TikTok, have seen strong growth in this area, even though they are still much smaller than Alibaba.

Alibaba has managed to come out of an eventful year in a good shape. There are, however, still plenty of challenges ahead: Both regulators and the competition are hot on its tail.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 14, 2021.

Future Returns: Opportunity in Global Healthcare

The shares of healthcare companies often aren’t the first to take off when the economy recharges, but strategists at Citi believe the sector is inexpensive and worth a look.

Citi Private Bank shifted a recommendation that investors overweight their stock allocation to global healthcare by 2% to 4% in late April. That means healthcare now represents half of the bank’s recommended 8% overweighting to global stocks, making it a substantial bet.

Typically healthcare “is a more defensive asset,” says David Bailin, chief investment officer and global head of investments at Citi Global Wealth. But the bank is making this bet because “healthcare looks unusually cheap.”

Shares in healthcare companies have risen only by 15% since the end of 2019, including a 5% gain for the year through mid-April—a significant lag to the double-digit gain in the S&P 500 in that time period, according to Cit Private Bank’s April 22 global strategy report. These subdued gains are despite a valuation discount of 25% to the broad S&P 500 index, Citi said.

Also, in the U.S., the sector trades at a 30% forward price-to-earnings ratio discount to the S&P 500, the bank said.

Some of the relative drag on the sector could be related to worries about potential regulation. Proposals mentioned since the Democratic primaries have included regulation of drug prices and an overhaul of the U.S. insurance system, Bailin says.

But, he adds, “talk about actual legislation so far includes increased subsidies to fund long-term care as well as enhancements to the Affordable Care Act subsidy regime—not cutbacks.” There’s also no call for healthcare reform.

“Given that we see the Biden proposal as a ceiling, not a floor, to what can actually be passed in the current Congress, we view the odds of major healthcare regulation that would constrict the growth of healthcare revenues as lower than what the market is currently pricing,” Bailin says.

The reason to tilt to healthcare is to gain exposure to global growth, exposure to stocks with high dividend yields, and exposure to what Citi views as an “unstoppable trend”—the demographic shift within many countries to older populations that have the money to spend on the healthcare they increasingly need.

Penta recently spoke with Bailin about where the opportunities in healthcare are.

Why Is Healthcare Undervalued?

Healthcare historically trades at a lower valuation to the market, but always at a correlated lower valuation. Since the market bottomed in March 2020, however, stocks have been driven to lofty levels by growth sectors, such as technology—a trend that stumbled on Monday as the Dow sank 500 points.

But during this period, over the last 15 months, healthcare stocks “did not inflate,” Bailin says. Their valuations remained “within a channel of normality,” yet relative to everything else, they’re “under-appreciated,” he says.

One interesting note about healthcare is that the sector hasn’t ever had a down year in revenues or earnings—even during the years of the financial crisis, 2008-09—since the late 1980s. “How much would you pay for that consistency? Right now, you’d pay a lot,” Bailin says.

Also, the bank’s strategists note in the April report that the sector has not been a bad place to be when markets slide. “Healthcare has historically fallen the least among market segments during corrections,” the report said.

Which Sectors to Focus On? 

In terms of specifically where to invest, Citi wrote that “the long-term case” for spending on healthcare “rests on aging demographics, rising income levels in emerging market countries, and tremendous innovation in vaccines, gene therapy, med-tech, wearables, Alzheimer’s treatments, and much more.”

One company that will benefit from current demographic shifts, for instance, is San Diego-based Dexcom, which develops, makes, and distributes monitoring systems for diabetes.

Biotechnology and biopharmaceutical companies also should benefit, given the important role these companies play in drug discoveries and treatments.

To capture global growth—and high dividend yields—Citi recommends companies such as Chicago-based biopharmaceutical AbbVie (with a 4.5% dividend yield), and companies listed on exchanges outside the U.S., where stocks are slightly less expensive, Bailin says. An example of the latter is Paris-based multinational pharmaceutical company Sanofi, which also has a high dividend yield of 3.7%.

Citi also likes companies creating healthcare delivery systems, such as telehealth—services that allow patients to interact virtually with their health-care practitioners.

“There are a whole bunch of companies that are changing the delivery modality to moving away from the hospital and away from the office,” Bailin says. “We think this will happen with many sectors.”

Also worth a look are companies involved in medical devices, robotic surgery, or “anything that creates better decisions,” he says.

Intuitive Surgical, for example, is the leader in robotic-assisted surgeries, Bailin says. It “continues to expand into new surgical indications, and the [total addressable market] is enormous.”

In the wake of the pandemic, Bailin expects some pharmaceutical companies and companies focused on physician-administered therapies and vaccines will get a boost temporarily as people return to the doctor for the first time in more than a year.

“Instances of disease are lower, but it doesn’t mean they actually are lower—they are just not reported,” Bailin says. “We have a bunch of catch-up over the next 12-to-24 months to [get] back to baseline interaction with healthcare providers.”

New Jersey-based Merck, for instance, could benefit “given that its oncology and vaccines are a significant percentage of revenue,” he says.

What About Technology? 

While the technology sector had a bad day on Tuesday as the market rotated out of growth stocks, investors may not be ready to abandon hot tech names just yet. In announcing the tactical shift higher in healthcare, Citi noted that investors who followed their recommendation would still have plenty of exposure to technology.

Investors who follow Citi’s recommended 60% allocation to global stocks as defined by the investable MSCI All Country World Index will have 12.6% of their portfolio invested in technology, according to Citi. The recommendation to increase healthcare to a 4% overweight will lead to an 11.2% exposure.

“For decades the sector has carried some modicum of political and headline risk,” Citi wrote. “But that has yet to upend an enviable record of positive revenue growth. Steady revenue growth at a deep valuation discount is the type of script we like.”

Reprinted by permission of Penta. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 11, 2021

4 Factors That Are Popping the EV Stock Bubble

Shares fell hard across the sector on Wednesday as concern about inflation joined the list of worries dragging on the shares. Stock in Tesla (ticker: TSLA), the leader of the EV pack, dropped 4.4% Wednesday, closing below $600 a share for the first time since early March. Shares closed near the low of the day.

The average drop among the EV stocks Barron’s tracks was about 3%. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite dropped 2.1%, 2% and 2.7%, respectively.

Behind all those declines was news early in the day that consumer prices increased 4.2% year over year in April, far higher than the Federal Reserve’s 2% target. In April 2020, of course, things were falling apart, sending prices lower, amid Covid-19 lockdowns, so the gain was relative to a low base. But the March to April pickup in prices, excluding food and energy, was 0.9%. That rate equals full-year inflation of more than 11%.

Inflation that high is like a parasite, eating into savings and sucking energy out of the economy. It also tends to hurt stock valuations, especially those of expensive growth companies that are expected to generate most of their cash flows far in the future. Higher inflation means higher bond yields, which reduce the current value of future cash flows, partly because higher rates give investors options to earn more interest on their money right now.

Wednesday’s inflation-fueled declines are just the tip of the iceberg, though, for EV companies. Tesla stock is down about 34% from its January 52-week high of more than $900 a share. The average drop from 52-week highs for the rest of the EV names is about 70%. Investors just don’t have the appetite for more speculative, higher-growth stocks in the current environment.

Stock in Churchill Capital Acquisition Corp. IV (CCIV), the SPAC merging with Lucid Motors, is down about 73% from its 52-week high. Hyliion (HYLN) shares are down about 86%. And the Chinese EV makers NIO (NIO), XPeng (XPEV) and Li Auto (LI) have fallen an average of about 45% from their 52-week highs.

Inflation is just the latest problem for the stocks. More competition in the EV business, with traditional auto makers pouring billions into developing vehicles, is one problem. At the same time, the global shortage of semiconductors is constraining automotive production around the globe, making it hard for EV makers to benefit from red-hot demand for cars and rising gasoline price.

What is more, many of the new EV companies became public by merging with special-purpose acquisition companies. Many SPAC stocks, not just the EV-related ones, are struggling. The Defiance Next Gen SPAC Derived ETF (SPAK) is down 34% from its February 52-week high.

A dozen EV-SPAC companies Barron’s tracks are now down 15% over the past year on average. Only five remain above their SPAC merger price of $10 a share: Lucid, Fisker (FSR), Arrival (ARVL), QuantumScape (QS), and Nikola (NKLA).

Investors might believe that means those are the long-term winners among the EV SPAC stocks. But it is also possible their higher prices mean there is still further to fall.

Reprinted by permission of Barron’s. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 12, 2021.

Interview: Architect Koichi Takada

Architect Koichi Takada has never taken the easy option.

Born in Tokyo, at 16 he held dreams of pursuing life as a fashion designer or an artist – aimed at realising a firm desire to live in Manhattan.

He eventually came to architecture – a combination of art and engineering – as a pathway to appease such wants and those of his parents.

It didn’t quite work out – his father offering an easy life and generous role in the family engineering business so long as he remained in Tokyo.

Takada instead chose New York.

Cut to now and the 48-year-old is a force within global architecture, having set up an eponymous Australian-based firm while securing various awards across projects that have transformed urban landscapes here as well as in Asia, America, the Middle East and beyond.

Kanebridge News: Most people would take the path of least resistance – why were you so set on going it alone and moving to New York?

KT: This was definitely a leap of faith. I had this gut feeling that I’m going to survive there, that somehow everything would work out including communications [a language barrier] and making friends – you know Japanese people are very homogenous and very singular, and I’d thrown myself into this melting pot. But it had been a dream of mine.

 

KN: Did first impressions of the city stack up? 

KT: When I arrived my first impression was just disbelief – and the way you come out of the Lincoln Tunnel, I was just,‘wow’. But it was overwhelming, it was noisy and very competitive and cold and I didn’t get the pampering I had with my parents in Japan. I had sold everything to be there and I got sick of it.

 

RR: You eventually left New York to study in London, how did those times influence you and your work?

KN: After leaving New York, to continue my studies at the AA [Architectural Association School of Architecture] I met and learned from the likes of Zaha Hadid and Rem Koolhas, and that’s where I really learnt to push the boundaries, and create the point of difference, the uniqueness within this monotonous repetition of all this regulation … And the cultural component is definitely an important part too. When I was in New York, my favourite part was going to Central Park. And the same in London – I craved breathing space. I discovered a feeling that I connected with when in Japan, because nature is respected and there’s an effort to try and blend in [with nature] and find harmony.

Koichi Takada
Infinity Tower In Sydney’s Waterloo – Designed by Koichi Takada

 

KN: Nature is a central part of much of your work. 

KT: Yeah. With Infinity [Sydney’s Infinity Tower], when we were competing for the project we were given the volumes, but I thought it would actually overshadow the courtyard which was meant for public use. I thought to myself, ‘why would you create a courtyard that doesn’t receive any daylight?’ So, we opened a hole to let the light in. It’s very simple, but then all of a sudden you have a breeze, light and a way to interact with nature.

KN: Why did you settle in Sydney?

KT:  When I moved to Sydney in 1997, I just instantly felt something wonderful about the city, and now I’ve been here more than 20 years. I call it my home. It’s city and nature trying to balance. It’s one of the best cities in the world.

KN: Do you feel your style of melding nature and urban living was a natural fit for Sydney?

KT: Yeah, I think our product is very Sydney, it’s definitely not New York. Definitely not London. Definitely not Tokyo. But also fits what we want to make Sydney – the greenest [plant-filled] city in the world.

KN: The ‘greening’ of cities by architects and urban planners is imperative as we move forward. 

KT: For the next generation of architects, they’re very much part of this and have massive challenges to bring awareness to climate change – though it’s also very a globalised challenge for everyone.

KN: Well before Infinity Tower you were designing restaurants in Sydney’s suburbs – and then you went from, say, Sushi Train Maroubra, to Qatar’s Natural Museum. How much pressure came with such a high-profile role?

KT: Well, it was the best project in the world. And yeah, I did feel extra pressure. I think as an architect when you get a sense of freedom and liberation it turns into confidence, but in this instance,  you are against all the greats, like Jean Nouvel, and I thought look who we are against, I’m no one.

Interiors of the National Museum of Qatar

KN: You’re quite the sartorial gent – fair to say fashion is a firm creative outlet away from architecture?

KT: Yes, definitely, and I remember seeing Alexander Wang, who I’ve come to admire. You know we went to a grand opening party for Qatar and what I noticed is that I, naively followed the dress code, and these guys just did their own thing. It’s much more interesting than architecture.

KN: Seeing such appealed to the rule-breaker within?

KT: I wish I had figured it out when I was 18 in New York, and I’m not saying break every rule, but growing up in Japan, everything is telling you to conform. But it’s ok to think outside the box, to push a little bit. But it’s not so much his [Wang’s] work, it’s his spirit I’m inspired by. I know what it’s like being Asian in Manhattan, let’s just call it racist, or political, or whatever, but to be in that position and with that creativity and to prevail – I suddenly looked up to him.

koichitakada.com

Property Of The Week: 33 Ryan Street, Dundas Valley, NSW

Located in one of Dundas Valley’s premier streets, with close access to transport, shops and local schools, comes this brand-new, luxuriously appointed brick home.

Presenting clean, elegant, spacious modern living comes this duplex with 5-large bedrooms, 3-bathrooms and a 2-car parking. Provides high ceilings, designer bathrooms and bright entertaining areas.

Inside the home sees a combination of European tiles and polished floating timber floorboards underfoot – with the lower floor housing the communal spaces including the open plan kitchen, dining and living area.

It’s here the kitchen – fitted with stone benchtops and European appliances – flows towards the dining and living area, which extends outwards to an undercover entertaining area.

Also on the first floor is the main bathroom and laundry. The upper level sees four of the five bedrooms located on the top floor, with all bedrooms including a built-in robe and the master suite enjoying a private ensuite. The fifth bedroom is located on the ground floor.

Rounding out the home is the upstairs study nook and a large, landscaped yard.

The listing is headed to auction, Saturday, June 5, with Professionals Real Estate Ermington’s Ahmad Malas (+61 420 880 510) is managing the listing. Ermingtonrealestate.com.au

First Home Buyers Receive Budget Boost

Under a number of new initiatives announced by the government in the 2021-22 Federal Budget overnight, first home buyers are set to be offered a helping hand.

As property prices rise at the fastest month-on-month rate in 33-years, Treasurer Josh Frydenberg has announced three key measures designed to assist those looking to get a foothold in the Australian property market.

The government’s already existing first home buyer’s scheme will be boosted by another 10,000 places. This sees buyers only need a 5% deposit to secure a home. The other 15% needed to avoid paying the lender’s mortgage insurance (LMI) will be fronted up by the government, and eventually repaid.

Further, a new initiative sees single parents able to purchase a home with just 2% deposit. Named the Family Home Guarantee, eligible single parents will be able to build a new home or purchase an existing home with a minimal deposit. As above, places are limited – with applications to open from July 1, 2021 and will offer 10,000 places over four years.

Finally, the First Home Super Save Scheme will allow first-timers to access as much as $50,000 from their superannuation to purchase a house. The scheme has been expanded from the previous limits of $30,000