24 September 2022
Is Australia headed for a recession?
By business reporter Gareth Hutches
On Wednesday, the deputy governor of the Reserve Bank of Australia warned the outlook for the global economy was not good.
"It's on a bit of a knife-edge," she said.
Less than 48 hours later, the Bank of England said Britain was probably already in recession.
There are growing concerns about the United States, which looks to be heading towards recession.
And China's economy is straining under the pressure of its zero-COVID policy and problems in its gargantuan property market.
Will a recession in Australia be inevitable?
A 'probable' recession
RBA officials say that, at this point, they still have confidence Australia can avoid a recession.
They say our exceptionally-tight labour market, and the level of savings in the economy, can hopefully insulate Australia from any negative shocks that originate overseas.
But not everyone is optimistic.
Some economists suspect that, because so many countries are lifting interest rates in an uncoordinated frenzy, global growth will slow dramatically in the next 12 months and Australia won't be able to avoid the fallout.
Jo Masters, the chief economist of Barrenjoey, says a probable recession is "on the cards" for Australia.
Why? Partly because the RBA will be forced to keep lifting interest rates as long as other countries keep doing so, and it will take Australia's economy into recessionary territory.
The RBA's cash rate target is currently 2.35 per cent.
Ms Masters said her modelling suggested a cash rate around 3 per cent would be sufficient to bring inflation back down into the RBA's target band by early 2024, but the RBA will probably end up lifting the cash rate to 3.35 per cent.
"This will have economic consequences – weakening the growth outlook and seeing the unemployment rate lift," she said.
"B*Eco modelling suggests this would drive the economy into recession."
And what will happen once Australia's in recession?
Ms Masters said when domestic economic activity starts weakening rapidly next year, the RBA will end up cutting rates again to stimulate activity.
And those rate cuts will occur towards the end of next year.
So, the RBA will lift rates by more than it would like in coming months - pushing the economy into recession - and then it will start cutting rates to make the recession as painless as possible.
"This should be sufficient to leave any recession as relatively short and shallow, and perhaps that is what is needed to cement the path back to 2-3 per cent inflation," Ms Masters said.
She thinks the RBA will lift the cash rate target by 0.5 percentage points next month, from 2.35 per cent to 2.85 per cent.
Cash rate heading to 3.6 per cent?
Bill Evans, Westpac's chief economist, has made a similar argument.
In July, he was already forecasting the RBA to lift the cash rate target to 3.35 per cent, but this week he lifted that forecast higher.
He said the stubborn outlook for high inflation and wages growth in the US, and rising interest rates globally, had changed his mind.
He said he, too, suspected the RBA would lift the cash rate by another 0.5 percentage points next month.
But he now thinks the RBA will eventually end up lifting the cash rate target to 3.6 per cent by early next year.
He said since global central banks were planning to keep lifting rates, the RBA would have to follow suit to stop the Australian dollar losing too much value.
Why? For similar reasons to Ms Masters.
If foreign currencies were allowed to gain too much value against the Australian dollar, it might encourage foreigners to buy more Australian goods and services than they otherwise would have, and that would make it harder for the RBA to squeeze inflation out of Australia's economy.
Mr Evans said that was a key reason why the RBA won't want Australia's cash rate to lag too far behind the US's key interest rate.
"Recall that the key reason why the RBA reluctantly adopted quantitative easing in 2020 was maintaining competitiveness in the Australian dollar," he said.
"The RBA governor would be concerned that such a sharp widening of the expected yield differential with global rates will have implications for a weaker Australian dollar complicating the inflation challenge."
At this point, he thinks Australia's economy will grow by just 1 per cent in 2023.
Overall, he thinks central banks are taking the policy of 'least regret' by erring on the side of containing inflation "at the potential cost of growth in the near term."
Turning policy back decades
David Bassanese, the chief economist at BetaShares, also thinks the RBA will probably lift the cash rate target by 0.5 percentage points next month.
He said the RBA won't want Australia's dollar to lose too much value against other currencies.
"At US66c, the Australian dollar has already fallen 13 per cent from its peak of US76c in April this year," he said.
"My expectation is the Australian dollar will end the year at around US62-63c."
So, is there a clear coordination problem between global central banks?
As central banks everywhere lift rates to kill inflation, it's creating pressure for those same central banks to keep lifting rates to prevent their currencies losing value against other major currencies.
Meanwhile, the speed and breadth of the rate hikes globally is pushing the world's major economies towards recession.
Earlier this week, RBA deputy governor Michele Bullock was asked if there was a case to be made for some coordination among global central banks to stop the damage that's occurring from rising US interest rates and a strengthening US dollar.
But Ms Bullock pushed back against the idea, saying it would turn policy back decades.
"Exchange rates can play a very positive role," she said.
"In Australia, we've typically thought of it that way because it gives us flexibility and the ability to run our own policies, to a large extent, without necessarily having to follow what others are doing in other countries.
"We're not entirely immune, but it does give us more flexibility."
She said she didn't think global central bank coordination was the right thing to do in this situation, despite everything.
"In a sense, the US dollar is responding to relative economic conditions, and inflation and interest rates in the US, relative to other countries," she said.
"That's what you would expect."
https://www.abc.net.au/news/2022-09-24/is-australia-headed-for-a-recession/101467854?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web
On Wednesday, the deputy governor of the Reserve Bank of Australia warned the outlook for the global economy was not good.
"It's on a bit of a knife-edge," she said.
Less than 48 hours later, the Bank of England said Britain was probably already in recession.
There are growing concerns about the United States, which looks to be heading towards recession.
And China's economy is straining under the pressure of its zero-COVID policy and problems in its gargantuan property market.
Will a recession in Australia be inevitable?
A 'probable' recession
RBA officials say that, at this point, they still have confidence Australia can avoid a recession.
They say our exceptionally-tight labour market, and the level of savings in the economy, can hopefully insulate Australia from any negative shocks that originate overseas.
But not everyone is optimistic.
Some economists suspect that, because so many countries are lifting interest rates in an uncoordinated frenzy, global growth will slow dramatically in the next 12 months and Australia won't be able to avoid the fallout.
Jo Masters, the chief economist of Barrenjoey, says a probable recession is "on the cards" for Australia.
Why? Partly because the RBA will be forced to keep lifting interest rates as long as other countries keep doing so, and it will take Australia's economy into recessionary territory.
The RBA's cash rate target is currently 2.35 per cent.
Ms Masters said her modelling suggested a cash rate around 3 per cent would be sufficient to bring inflation back down into the RBA's target band by early 2024, but the RBA will probably end up lifting the cash rate to 3.35 per cent.
"This will have economic consequences – weakening the growth outlook and seeing the unemployment rate lift," she said.
"B*Eco modelling suggests this would drive the economy into recession."
And what will happen once Australia's in recession?
Ms Masters said when domestic economic activity starts weakening rapidly next year, the RBA will end up cutting rates again to stimulate activity.
And those rate cuts will occur towards the end of next year.
So, the RBA will lift rates by more than it would like in coming months - pushing the economy into recession - and then it will start cutting rates to make the recession as painless as possible.
"This should be sufficient to leave any recession as relatively short and shallow, and perhaps that is what is needed to cement the path back to 2-3 per cent inflation," Ms Masters said.
She thinks the RBA will lift the cash rate target by 0.5 percentage points next month, from 2.35 per cent to 2.85 per cent.
Cash rate heading to 3.6 per cent?
Bill Evans, Westpac's chief economist, has made a similar argument.
In July, he was already forecasting the RBA to lift the cash rate target to 3.35 per cent, but this week he lifted that forecast higher.
He said the stubborn outlook for high inflation and wages growth in the US, and rising interest rates globally, had changed his mind.
He said he, too, suspected the RBA would lift the cash rate by another 0.5 percentage points next month.
But he now thinks the RBA will eventually end up lifting the cash rate target to 3.6 per cent by early next year.
He said since global central banks were planning to keep lifting rates, the RBA would have to follow suit to stop the Australian dollar losing too much value.
Why? For similar reasons to Ms Masters.
If foreign currencies were allowed to gain too much value against the Australian dollar, it might encourage foreigners to buy more Australian goods and services than they otherwise would have, and that would make it harder for the RBA to squeeze inflation out of Australia's economy.
Mr Evans said that was a key reason why the RBA won't want Australia's cash rate to lag too far behind the US's key interest rate.
"Recall that the key reason why the RBA reluctantly adopted quantitative easing in 2020 was maintaining competitiveness in the Australian dollar," he said.
"The RBA governor would be concerned that such a sharp widening of the expected yield differential with global rates will have implications for a weaker Australian dollar complicating the inflation challenge."
At this point, he thinks Australia's economy will grow by just 1 per cent in 2023.
Overall, he thinks central banks are taking the policy of 'least regret' by erring on the side of containing inflation "at the potential cost of growth in the near term."
Turning policy back decades
David Bassanese, the chief economist at BetaShares, also thinks the RBA will probably lift the cash rate target by 0.5 percentage points next month.
He said the RBA won't want Australia's dollar to lose too much value against other currencies.
"At US66c, the Australian dollar has already fallen 13 per cent from its peak of US76c in April this year," he said.
"My expectation is the Australian dollar will end the year at around US62-63c."
So, is there a clear coordination problem between global central banks?
As central banks everywhere lift rates to kill inflation, it's creating pressure for those same central banks to keep lifting rates to prevent their currencies losing value against other major currencies.
Meanwhile, the speed and breadth of the rate hikes globally is pushing the world's major economies towards recession.
Earlier this week, RBA deputy governor Michele Bullock was asked if there was a case to be made for some coordination among global central banks to stop the damage that's occurring from rising US interest rates and a strengthening US dollar.
But Ms Bullock pushed back against the idea, saying it would turn policy back decades.
"Exchange rates can play a very positive role," she said.
"In Australia, we've typically thought of it that way because it gives us flexibility and the ability to run our own policies, to a large extent, without necessarily having to follow what others are doing in other countries.
"We're not entirely immune, but it does give us more flexibility."
She said she didn't think global central bank coordination was the right thing to do in this situation, despite everything.
"In a sense, the US dollar is responding to relative economic conditions, and inflation and interest rates in the US, relative to other countries," she said.
"That's what you would expect."
https://www.abc.net.au/news/2022-09-24/is-australia-headed-for-a-recession/101467854?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web
01 September 2022
‘We’re at crisis point’: Calls for Aussie kids as young as 13 to start work to address labour shortages
Writer: Rhiannon Lewin
With more than 40,000 job vacancies in retail alone, one industry organisation says the solution may be right in front of us.
Teens as young as 13 could soon be making coffees and packing groceries, as part of a proposal by the Australian Retailers Association (ARA) to fill gaps in labour shortages across the country.
In a submission to the Jobs and Skills Summit, ARA chief executive Paul Zarha said labour shortages in Australia need to be addressed.
“We’re at crisis point when it comes to labour shortages,” he said.
“With over 40,000 job vacancies in retail trade across the country – the largest growth in vacancies is within retail.”
Zahra said a national framework on the legal working age could allow younger Australians to fill labour shortages.
“What we’re looking for is national consistency and the ability to tap into willing student workers in a consistent way around the country,” he said.
“At the moment, there’s disparity around the legal working age for students, with the states and territories setting their own regulations. It’s not for business to define the minimum working age – that’s a job for government.”
Currently, in NSW, there is no minimum age for part-time work.
In Victoria, the general minimum age for part-time or casual work is 15.
In Queensland, the minimum age for part-time work is generally 13, but under 16s need parental consent.
“An ideal model would be one where we allow 13 to 15 year olds to work, with sensible regulations in place around not working during school hours or at times that would impact a young person’s education,” Zahra said.
“Agreeing to a national framework on young workers would help mobilise a willing and able cohort of people to help address the staffing shortfall.
“Most Australians got their first job in retail or hospitality and learn many skills that set them up for their future. A simple change like this could have an immediate impact on filling vacancies.”
Meanwhile, University of Sydney Vice-Chancellor Mark Scott says a stronger government focus on higher education would help solve the skill’s shortage crisis.
In an address to the National Press Club on Wednesday, Professor Scott said the funding model for universities needed to be improved.
Ahead of the government’s jobs and skills summit, which begins on Thursday, the vice-chancellor said it was critical for there to be an increase in national investment in research to drive future jobs.
“Great changes in Australia’s economy and labour market have already taken place. More than half of the new jobs created over the last 30 years can only be held by people with a post-school qualification,” Scott said.
“I’d like those at tomorrow’s jobs and skills summit to consider not just the immediate challenges, for which migration will surely be one answer, but those challenges Australia will contend with a decade from now.”
The speech also highlighted the university’s vision for the next decade.
Among some of the goals outlined was to enable more than 1000 more students from low socio-economic backgrounds and disadvantaged schools to study at the university, along with a greater emphasis on student-focused education.
https://7news.com.au/business/workplace-matters/were-at-crisis-point-calls-for-aussie-kids-as-young-as-13-to-start-work-to-address-labour-shortages--c-8067447
With more than 40,000 job vacancies in retail alone, one industry organisation says the solution may be right in front of us.
Teens as young as 13 could soon be making coffees and packing groceries, as part of a proposal by the Australian Retailers Association (ARA) to fill gaps in labour shortages across the country.
In a submission to the Jobs and Skills Summit, ARA chief executive Paul Zarha said labour shortages in Australia need to be addressed.
“We’re at crisis point when it comes to labour shortages,” he said.
“With over 40,000 job vacancies in retail trade across the country – the largest growth in vacancies is within retail.”
Zahra said a national framework on the legal working age could allow younger Australians to fill labour shortages.
“What we’re looking for is national consistency and the ability to tap into willing student workers in a consistent way around the country,” he said.
“At the moment, there’s disparity around the legal working age for students, with the states and territories setting their own regulations. It’s not for business to define the minimum working age – that’s a job for government.”
Currently, in NSW, there is no minimum age for part-time work.
In Victoria, the general minimum age for part-time or casual work is 15.
In Queensland, the minimum age for part-time work is generally 13, but under 16s need parental consent.
“An ideal model would be one where we allow 13 to 15 year olds to work, with sensible regulations in place around not working during school hours or at times that would impact a young person’s education,” Zahra said.
“Agreeing to a national framework on young workers would help mobilise a willing and able cohort of people to help address the staffing shortfall.
“Most Australians got their first job in retail or hospitality and learn many skills that set them up for their future. A simple change like this could have an immediate impact on filling vacancies.”
Meanwhile, University of Sydney Vice-Chancellor Mark Scott says a stronger government focus on higher education would help solve the skill’s shortage crisis.
In an address to the National Press Club on Wednesday, Professor Scott said the funding model for universities needed to be improved.
Ahead of the government’s jobs and skills summit, which begins on Thursday, the vice-chancellor said it was critical for there to be an increase in national investment in research to drive future jobs.
“Great changes in Australia’s economy and labour market have already taken place. More than half of the new jobs created over the last 30 years can only be held by people with a post-school qualification,” Scott said.
“I’d like those at tomorrow’s jobs and skills summit to consider not just the immediate challenges, for which migration will surely be one answer, but those challenges Australia will contend with a decade from now.”
The speech also highlighted the university’s vision for the next decade.
Among some of the goals outlined was to enable more than 1000 more students from low socio-economic backgrounds and disadvantaged schools to study at the university, along with a greater emphasis on student-focused education.
https://7news.com.au/business/workplace-matters/were-at-crisis-point-calls-for-aussie-kids-as-young-as-13-to-start-work-to-address-labour-shortages--c-8067447
18 August 2022
If property prices are going down, why are rents going up?
By Tawar Razaghi
Tenants hearing talk of a housing market downturn would be forgiven for thinking they will get a break on the cost of their rent.
While national property values dropped 2 per cent in the three months to July, on CoreLogic figures, and are expected to fall further, the rental market is heading in the opposite direction.
The country is in the grips of another rental crisis, with Australian rents now 9.8 per cent higher over the year to July on CoreLogic figures – and that is unlikely to ease as population growth returns to normal, adding to more rental demand.
Rents and property prices are diverging because property prices are largely driven by interest rates and the ease of securing a home loan, while the cost of renting depends on the availability of rentals compared to demand, experts say.
So while the combination of rising interest rates and caps on borrowing capacity have reduced homebuyer budgets, the rental vacancy rate has plummeted to record lows around the country, leaving renters with few options to choose from and landlords holding the upper hand in charging higher rents.
The options available are further restricted because some landlords have moved their properties from the long-term rental market into the short-stay market as the economy reopened and tourism returned.
Impact Economics and Policy economist Dr Angela Jackson said while landlords may use the excuse of higher mortgage rates as the reason for rising rents, the availability of rentals was the ultimate driver.
“Higher interest rates might be used as an excuse, but that’s not the reason driving higher rents. The reality is the market has tightened significantly, and they can increase their rents, so they do,” Jackson said.
“You would think there would be this relationship between house prices and rents but that just doesn’t hold – it’s about the supply of rental housing.”
Jackson said the tree- and sea-change trend pushed more renters into already undersupplied regional rental markets. Changing household formation was also squeezing the number of available properties for lease, as tenants keep a spare bedroom for a home office or share with fewer housemates during the pandemic.
“It partly has got to do with people who moved home and are moving back out. There are fewer people in each household, the nature of what people are demanding has changed, and you’ve got the return of migration. The arrivals are getting back to pre-pandemic levels.”
The Australia Institute senior economist Matt Grudnoff said the main reason property prices in the sales market skyrocketed for two years after the pandemic hit was because the cost of borrowing money was at record lows and was now back on the rise.
“The reason house prices went up when rates were down wasn’t because everybody was richer. It was because money cost less,” Grudnoff said.
“The cost of housing is the combination of the price and the interest rates. Almost everybody borrows to buy the house.”
Meanwhile, asking rents shoot up when there is a shortage of availability like now, he said, putting landlords in the box seat and allowing them to increase their prices.
Tenants’ Union of NSW chief executive Leo Patterson Ross said there were not enough homes available for lease that suited renters’ needs two years into a pandemic, where space, amenities and good-quality properties are more valuable than ever before.
“There are not enough homes that are suitable in size and location and in price and quality for the needs of the community,” Patterson Ross said.
He said asking rents were ultimately set by supply and demand.
“At the end of the day is there enough properties to meet the demand of people who need to rent? [The sales and rental markets] are set by very different factors, and they can move in different directions.”
While rising interest rates may prompt a landlord to hike their asking rents, and some investors are quick to suggest passing on higher borrowing costs to tenants, state laws limit how often a landlord can increase rent.
“That couple in Melbourne, for instance, who just bought the place and just put up the rent. If their costs change the week after the contract they don’t have the capacity legally to increase the rent,” he said, adding that someone who has held a property for longer could test the market anew.
He said that the largest cost to landlords was the interest component of their mortgage repayments. Rising interest rates cost the public purse if landlords’ rent does not cover the costs of holding the asset through the tax deductions available for negatively geared properties, and experts estimate these tax breaks could cost taxpayers up to billion in coming years.
https://www.smh.com.au/property/news/if-property-prices-are-going-down-why-are-rents-going-up-20220816-p5badd.html
Tenants hearing talk of a housing market downturn would be forgiven for thinking they will get a break on the cost of their rent.
While national property values dropped 2 per cent in the three months to July, on CoreLogic figures, and are expected to fall further, the rental market is heading in the opposite direction.
The country is in the grips of another rental crisis, with Australian rents now 9.8 per cent higher over the year to July on CoreLogic figures – and that is unlikely to ease as population growth returns to normal, adding to more rental demand.
Rents and property prices are diverging because property prices are largely driven by interest rates and the ease of securing a home loan, while the cost of renting depends on the availability of rentals compared to demand, experts say.
So while the combination of rising interest rates and caps on borrowing capacity have reduced homebuyer budgets, the rental vacancy rate has plummeted to record lows around the country, leaving renters with few options to choose from and landlords holding the upper hand in charging higher rents.
The options available are further restricted because some landlords have moved their properties from the long-term rental market into the short-stay market as the economy reopened and tourism returned.
Impact Economics and Policy economist Dr Angela Jackson said while landlords may use the excuse of higher mortgage rates as the reason for rising rents, the availability of rentals was the ultimate driver.
“Higher interest rates might be used as an excuse, but that’s not the reason driving higher rents. The reality is the market has tightened significantly, and they can increase their rents, so they do,” Jackson said.
“You would think there would be this relationship between house prices and rents but that just doesn’t hold – it’s about the supply of rental housing.”
Jackson said the tree- and sea-change trend pushed more renters into already undersupplied regional rental markets. Changing household formation was also squeezing the number of available properties for lease, as tenants keep a spare bedroom for a home office or share with fewer housemates during the pandemic.
“It partly has got to do with people who moved home and are moving back out. There are fewer people in each household, the nature of what people are demanding has changed, and you’ve got the return of migration. The arrivals are getting back to pre-pandemic levels.”
The Australia Institute senior economist Matt Grudnoff said the main reason property prices in the sales market skyrocketed for two years after the pandemic hit was because the cost of borrowing money was at record lows and was now back on the rise.
“The reason house prices went up when rates were down wasn’t because everybody was richer. It was because money cost less,” Grudnoff said.
“The cost of housing is the combination of the price and the interest rates. Almost everybody borrows to buy the house.”
Meanwhile, asking rents shoot up when there is a shortage of availability like now, he said, putting landlords in the box seat and allowing them to increase their prices.
Tenants’ Union of NSW chief executive Leo Patterson Ross said there were not enough homes available for lease that suited renters’ needs two years into a pandemic, where space, amenities and good-quality properties are more valuable than ever before.
“There are not enough homes that are suitable in size and location and in price and quality for the needs of the community,” Patterson Ross said.
He said asking rents were ultimately set by supply and demand.
“At the end of the day is there enough properties to meet the demand of people who need to rent? [The sales and rental markets] are set by very different factors, and they can move in different directions.”
While rising interest rates may prompt a landlord to hike their asking rents, and some investors are quick to suggest passing on higher borrowing costs to tenants, state laws limit how often a landlord can increase rent.
“That couple in Melbourne, for instance, who just bought the place and just put up the rent. If their costs change the week after the contract they don’t have the capacity legally to increase the rent,” he said, adding that someone who has held a property for longer could test the market anew.
He said that the largest cost to landlords was the interest component of their mortgage repayments. Rising interest rates cost the public purse if landlords’ rent does not cover the costs of holding the asset through the tax deductions available for negatively geared properties, and experts estimate these tax breaks could cost taxpayers up to billion in coming years.
https://www.smh.com.au/property/news/if-property-prices-are-going-down-why-are-rents-going-up-20220816-p5badd.html
04 August 2022
Big four banks all pass on interest rate hikes to mortgage holders
By Daniel Jeffrey
All of Australia's big four banks have moved to pass on the official interest rate increase to customers.
Westpac and NAB announced they will both join the Commonwealth Bank and ANZ in passing on the Reserve Bank of Australia's newest cash rate rise.
Those with home loans will face an increase of 0.5 per cent on their variable interest rates, the full amount announced by the RBA on Tuesday.
It will also increase the interest rates on select savings products.
CommBank was the first to announce the change, followed by ANZ.
Both of those institutions' changes will come into effect August 12, as will NAB's, while Westpac customers will see a shift on August 18.
https://www.9news.com.au/national/australia-interest-rates-big-four-banks-cash-rate-hike-mortgage-cba-anz-nab-westpac/ef01e1d3-01c8-4e7a-aebc-163c3b4573a1
All of Australia's big four banks have moved to pass on the official interest rate increase to customers.
Westpac and NAB announced they will both join the Commonwealth Bank and ANZ in passing on the Reserve Bank of Australia's newest cash rate rise.
Those with home loans will face an increase of 0.5 per cent on their variable interest rates, the full amount announced by the RBA on Tuesday.
It will also increase the interest rates on select savings products.
CommBank was the first to announce the change, followed by ANZ.
Both of those institutions' changes will come into effect August 12, as will NAB's, while Westpac customers will see a shift on August 18.
https://www.9news.com.au/national/australia-interest-rates-big-four-banks-cash-rate-hike-mortgage-cba-anz-nab-westpac/ef01e1d3-01c8-4e7a-aebc-163c3b4573a1
03 August 2022
Get Ready, in 2023 Electronic Land Book Starts to be Implemented
Author: Muhdany Yusuf Laksono
JAKARTA, KOMPAS.com - The Ministry of ATR/BPN has a plan to transform land services from conventional to digital-based.
The Head of the Center for Land Data and Information, Spatial Planning, LP2B (Pusdatin), I Ketut Gede Ary Sucaya explained, the digital transformation roadmap of the Ministry of ATR/BPN.
"First, we at Pusdatin will strengthen the digital literacy of implementers to be more aware. Then increase the complexity of services, to realize an electronic land book," he said, quoted from the Ministry of ATR/BPN website, Wednesday (03/08/2022).
Then in 2023, less paper is planned. Thus, the land book is already electronic-based with an electronic signature as well.
"Then, in 2024 if possible we will be paperless. And in 2025 we will have implemented blockchain, smart contracts, full monetization and finally we are in a digital society," said Ketut Ary Sucaya.
Secretary General of the Ministry of ATR/BPN Himawan Arief Soegoto said his party had started the transformation. One of them is digitizing land documents and certificates.
The benefits of digitalization have been directly felt by the Ministry of ATR/BPN with the high number of transactions that occur.
"The process of services or transactions from Mortgages alone this semester has reached more than Rp 460 trillion," said Himawan Arief Soegoto.
Meanwhile, the Director General of Determination of Rights and Land Registration, Suyus Windayana, said that currently around 50 percent of land services are carried out digitally.
With this amount alone, it has had a positive impact on the Ministry of ATR/BPN's Non-Tax State Revenue (PNBP).
"I hope that next year 80 percent of services can be done electronically. That way we will not encounter problems like before," concluded Suyus.
https://www.kompas.com/properti/read/2022/08/03/193000821/siap-siap-tahun-2023-buku-tanah-elektronik-mulai-diterapkan
23 July 2022
Secondary House Prices in Medan are More Expensive than Jakarta
Jakarta, CNBC Indonesia - It is said that young people are increasingly finding it difficult to own a house, so it is not surprising that many decide to choose a used house over a new house. The changes in the price of used houses are largely influenced by the amount of demand and supply of properties available in the market.
Based on data from Rumah123.com, entering the beginning of the second semester of 2022, it was recorded that the price of used houses in Indonesia rose slightly by 0.6% compared to the previous month. On the supply side, there was a growth of 2.4% month-on-month.
However, if the annual housing supply trend is seen in comparison to years, it shows a significant increase of up to 22.3%.
In July 2022, the highest annual used house price increase was recorded not from the Greater Jakarta area or other areas on the island of Java, but in Medan. Price growth of 11.2% puts Medan as the city with the fastest price increase on a yearly basis.
The CEO of 99 Group Indonesia, Wasudewan, said the skyrocketing residential supply growth occurred for various types of properties, including secondary houses.
"Along with the recovery in demand for the property market in the country, of course we also need to maintain supply can grow at the same rate, so that consumer needs can be met. database and in-depth research strength from our team," explained Wasudewan in an official statement, Saturday (23/7/2022).
For comparison of the trend of used house prices seen between months, Surakarta occupies the first position nationally with an increase of 2.1%.
A positive trend was also seen in the Greater Jakarta area, with Jakarta, Tangerang, Depok, Bogor, and Bekasi experiencing price increases of 0.1%, 0.5%, 1.3%, 1.7%, and 1.0% respectively. consecutively this month.
For other big cities on the island of Java, on a month-on-month basis, house prices in Bandung, Surabaya, and Semarang grew 0.8%, 0.2% and 0.4% respectively, while house prices in Yogyakarta fell by 1.3%.
Switching to big cities outside Java, namely Denpasar and Makassar, prices decreased by 5.1%, and 1.8% in June 2022 compared to May 2022.
https://www.cnbcindonesia.com/market/20220723111901-17-357928/harga-rumah-seken-di-medan-more-mahal-dari-jakarta
Based on data from Rumah123.com, entering the beginning of the second semester of 2022, it was recorded that the price of used houses in Indonesia rose slightly by 0.6% compared to the previous month. On the supply side, there was a growth of 2.4% month-on-month.
However, if the annual housing supply trend is seen in comparison to years, it shows a significant increase of up to 22.3%.
In July 2022, the highest annual used house price increase was recorded not from the Greater Jakarta area or other areas on the island of Java, but in Medan. Price growth of 11.2% puts Medan as the city with the fastest price increase on a yearly basis.
The CEO of 99 Group Indonesia, Wasudewan, said the skyrocketing residential supply growth occurred for various types of properties, including secondary houses.
"Along with the recovery in demand for the property market in the country, of course we also need to maintain supply can grow at the same rate, so that consumer needs can be met. database and in-depth research strength from our team," explained Wasudewan in an official statement, Saturday (23/7/2022).
For comparison of the trend of used house prices seen between months, Surakarta occupies the first position nationally with an increase of 2.1%.
A positive trend was also seen in the Greater Jakarta area, with Jakarta, Tangerang, Depok, Bogor, and Bekasi experiencing price increases of 0.1%, 0.5%, 1.3%, 1.7%, and 1.0% respectively. consecutively this month.
For other big cities on the island of Java, on a month-on-month basis, house prices in Bandung, Surabaya, and Semarang grew 0.8%, 0.2% and 0.4% respectively, while house prices in Yogyakarta fell by 1.3%.
Switching to big cities outside Java, namely Denpasar and Makassar, prices decreased by 5.1%, and 1.8% in June 2022 compared to May 2022.
https://www.cnbcindonesia.com/market/20220723111901-17-357928/harga-rumah-seken-di-medan-more-mahal-dari-jakarta
12 July 2022
Hit by Recession Issues, Australian Dollar Drops to IDR 10,000!
Jakarta, CNBC Indonesia - The Australian Dollar exchange rate fell against the rupiah earlier this week and continued on Tuesday (12/7/2022) morning trading. The Australian dollar is now back in the range of IDR 10,000/AU$.
According to data from Refinitiv, the Australian dollar this morning fell 0.25% to Rp 10,049/AU$ in the spot market, while yesterday it fell 1.9%.
Some areas of China that are back in lockdown are making the Australian dollar. China is Australia's main export market, so this policy could result in a decline in demand.
Several cities in China did so because of the occurrence of the Corona virus (Coronavirus Disease-2019/Covid-19). Restrictions from business shutdowns to lockdowns with the aim of controlling new infections.
Plus the Shanghai commercial center is preparing to carry out another mass test after detecting the BA.5 Omicron sub-variant.
China's return to lockdown has made the outlook for the Australian economy even more bleak, and the risk of a recession getting bigger.
Australia is one of the countries that is expected to suffer as a result of rising inflation, as well as the policy of its central bank (Reserve Bank of Australia/RBA) which raises interest rates.
"Many central banks today have essentially singled out mandates, namely lowering inflation. Policy credibility is a very valuable asset that should not be lost, so the central bank will increase interest rates," said Rob Subbraman, Nomura's chief economist at a Street event. Sign Asia CNBC International, Tuesday (5/7/2022).
Subbraman projects that in the next 12 months the euro zone, Britain, Japan, Australia, Canada and South Korea will also experience a recession.
"Aggressive rate hikes mean we're seeing a front loading policy. In the past few months we've seen the risk of a recession, and now some developed countries are actually falling into recession," Subbraman added.
The RBA under Philip Lowe's monetary policy announcement today raised interest rates by 50 basis points to 1.35%.
Thus, the RBA has raised interest rates for 3 months in a row, and is at the highest point since May 2019, or before the coronavirus disease (Covid-19) pandemic.
When interest rates rise, the business world will restrain its expansion due to higher lending rates, as well as people who delay consumption. This will have an impact on the economic slowdown, up to a recession.
Diana Mousina, senior economist at AMP Australia also said an increase in interest rates will have an impact on housing prices, consumer spending and housing investment which can suppress consumer confidence levels.
As a result, the risk of a recession is getting bigger.
https://www.cnbcindonesia.com/market/20220712100630-17-354866/dihantam-isu-resesi-dolar-australia-jeblok-ke-rp-10000
According to data from Refinitiv, the Australian dollar this morning fell 0.25% to Rp 10,049/AU$ in the spot market, while yesterday it fell 1.9%.
Some areas of China that are back in lockdown are making the Australian dollar. China is Australia's main export market, so this policy could result in a decline in demand.
Several cities in China did so because of the occurrence of the Corona virus (Coronavirus Disease-2019/Covid-19). Restrictions from business shutdowns to lockdowns with the aim of controlling new infections.
Plus the Shanghai commercial center is preparing to carry out another mass test after detecting the BA.5 Omicron sub-variant.
China's return to lockdown has made the outlook for the Australian economy even more bleak, and the risk of a recession getting bigger.
Australia is one of the countries that is expected to suffer as a result of rising inflation, as well as the policy of its central bank (Reserve Bank of Australia/RBA) which raises interest rates.
"Many central banks today have essentially singled out mandates, namely lowering inflation. Policy credibility is a very valuable asset that should not be lost, so the central bank will increase interest rates," said Rob Subbraman, Nomura's chief economist at a Street event. Sign Asia CNBC International, Tuesday (5/7/2022).
Subbraman projects that in the next 12 months the euro zone, Britain, Japan, Australia, Canada and South Korea will also experience a recession.
"Aggressive rate hikes mean we're seeing a front loading policy. In the past few months we've seen the risk of a recession, and now some developed countries are actually falling into recession," Subbraman added.
The RBA under Philip Lowe's monetary policy announcement today raised interest rates by 50 basis points to 1.35%.
Thus, the RBA has raised interest rates for 3 months in a row, and is at the highest point since May 2019, or before the coronavirus disease (Covid-19) pandemic.
When interest rates rise, the business world will restrain its expansion due to higher lending rates, as well as people who delay consumption. This will have an impact on the economic slowdown, up to a recession.
Diana Mousina, senior economist at AMP Australia also said an increase in interest rates will have an impact on housing prices, consumer spending and housing investment which can suppress consumer confidence levels.
As a result, the risk of a recession is getting bigger.
https://www.cnbcindonesia.com/market/20220712100630-17-354866/dihantam-isu-resesi-dolar-australia-jeblok-ke-rp-10000
28 June 2022
More than one in five Aussie homes sold for million or more in the year to March
By Serena Seyfort
A record high number of Australians spent at least million on buying a home in the past year, according to new data.
A staggering 23.8 per cent of the 596,733 residences sold across Australia in the year to March went for million or more, according to CoreLogic's annual Million Dollar Markets report.
There were also almost 20 per cent more homes sold in the year compared to the 497,923 sales recorded in the previous year.
CoreLogic Research Analyst Kaytlin Ezzy said Australia's bullish economic and property performance during latter part of 2021 had led to a record result number of sales and proportion of million-dollar sales.
"High consumer sentiment, tight advertised supply, and low interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4 per cent over the 12 months to January," she said.
Sydney suburbs made up 26.3 per cent of the new million-dollar markets, with the city's median residence value having sat above million since May 2021.
More than half of all Sydney sales over the 12 months to May transaction went for above million.
However, with national house values beginning to fall in May due to high inflation and rising interest rates, Ezzy said some of the houses that just reached the million-dollar mark would likely fall below million in value in coming months.
"As the market moves towards the downward phase of the cycle it's likely a number of the recent entrants to the million-dollar list will see their median values decline below the million mark."
https://www.9news.com.au/national/more-than-one-in-five-aussie-homes-sold-for-1-million-or-more-in-the-year-to-march/eeedab8f-e1d5-467a-9332-610f0ce723e1
A record high number of Australians spent at least million on buying a home in the past year, according to new data.
A staggering 23.8 per cent of the 596,733 residences sold across Australia in the year to March went for million or more, according to CoreLogic's annual Million Dollar Markets report.
There were also almost 20 per cent more homes sold in the year compared to the 497,923 sales recorded in the previous year.
CoreLogic Research Analyst Kaytlin Ezzy said Australia's bullish economic and property performance during latter part of 2021 had led to a record result number of sales and proportion of million-dollar sales.
"High consumer sentiment, tight advertised supply, and low interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4 per cent over the 12 months to January," she said.
Sydney suburbs made up 26.3 per cent of the new million-dollar markets, with the city's median residence value having sat above million since May 2021.
More than half of all Sydney sales over the 12 months to May transaction went for above million.
However, with national house values beginning to fall in May due to high inflation and rising interest rates, Ezzy said some of the houses that just reached the million-dollar mark would likely fall below million in value in coming months.
"As the market moves towards the downward phase of the cycle it's likely a number of the recent entrants to the million-dollar list will see their median values decline below the million mark."
https://www.9news.com.au/national/more-than-one-in-five-aussie-homes-sold-for-1-million-or-more-in-the-year-to-march/eeedab8f-e1d5-467a-9332-610f0ce723e1
23 June 2022
Melbourne Airport's busiest period in more than two years to begin tomorrow
By Serena Seyfort
Melbourne Airport staff are preparing for the airport's busiest period in more than two years, with the winter school holidays set to begin tomorrow.
More than 2.1 million passengers are expected to pass through Melbourne Airport between Friday and July 17, marking an increase on the 1.7 million passengers who travelled through the airport during the three-week Easter holiday period.
Melbourne Airport CEO Lorie Argus said airport management had been working to put extra support into the system ahead of the busy time.
"We've been preparing for school holidays for some weeks now," she said.
However, Argus said there were still staff shortages at the airport, as was the case around the world.
She said passengers should leave plenty of time to be processed at the airport, but also warned against them arriving too early.
"We encourage people to allow time to get to the airport, check in and go through security, as there may be queues, particularly at peak travel times.
"Equally, we'd ask people don't arrive too early, because some airlines don't open check-in until two hours before a domestic departure and threes hours prior to an international flight."
Argus said people arriving too early for flights just created congestion at already busy times.
She said passengers on domestic flights should arrive one to two hours before their flight and those on international flights should arrive two to three hours beforehand.
In response to questions about an increase of bags being lost in transit in recent months, Argus said passengers should be prepared to live without their luggage for short period of time.
She said measures to improve congestion at the airport in coming weeks had involved scheduling busier flights at the closest gates, increased shift coverage at security screening points, extra technicians around for infrastructure issues and extra cleaning services.
While Melbourne Airport is set to be busy in the coming weeks, Argus said the airport was still only at 80 per cent of its capacity when both domestic and international flights were taken into consideration.
Of the 2.1 million people who will use Melbourne Airport in coming weeks, 1.6 million will be travelling domestically, with just 447,000 taking international trips.
https://www.9news.com.au/national/melbourne-airports-busiest-period-in-more-than-two-years-to-begin-tomorrow/aad18872-457f-470b-a8f8-ed319ed54d5e
Melbourne Airport staff are preparing for the airport's busiest period in more than two years, with the winter school holidays set to begin tomorrow.
More than 2.1 million passengers are expected to pass through Melbourne Airport between Friday and July 17, marking an increase on the 1.7 million passengers who travelled through the airport during the three-week Easter holiday period.
Melbourne Airport CEO Lorie Argus said airport management had been working to put extra support into the system ahead of the busy time.
"We've been preparing for school holidays for some weeks now," she said.
However, Argus said there were still staff shortages at the airport, as was the case around the world.
She said passengers should leave plenty of time to be processed at the airport, but also warned against them arriving too early.
"We encourage people to allow time to get to the airport, check in and go through security, as there may be queues, particularly at peak travel times.
"Equally, we'd ask people don't arrive too early, because some airlines don't open check-in until two hours before a domestic departure and threes hours prior to an international flight."
Argus said people arriving too early for flights just created congestion at already busy times.
She said passengers on domestic flights should arrive one to two hours before their flight and those on international flights should arrive two to three hours beforehand.
In response to questions about an increase of bags being lost in transit in recent months, Argus said passengers should be prepared to live without their luggage for short period of time.
She said measures to improve congestion at the airport in coming weeks had involved scheduling busier flights at the closest gates, increased shift coverage at security screening points, extra technicians around for infrastructure issues and extra cleaning services.
While Melbourne Airport is set to be busy in the coming weeks, Argus said the airport was still only at 80 per cent of its capacity when both domestic and international flights were taken into consideration.
Of the 2.1 million people who will use Melbourne Airport in coming weeks, 1.6 million will be travelling domestically, with just 447,000 taking international trips.
https://www.9news.com.au/national/melbourne-airports-busiest-period-in-more-than-two-years-to-begin-tomorrow/aad18872-457f-470b-a8f8-ed319ed54d5e