SQM Research Weekly Newsletter
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SQM Research Ratings Update - Monday  25th August 2014
Property Valuations
Research Reports
Discounted/Distressed Properties
Funds Research
Ratings Table

To see the entire table of SQM Research's fund ratings, click HERE

(Please note: In order to view individual ratings reports you must be subscribed to SQM Research Ratings research. To subscribe, click HERE)

Count Von Count's Words for the Week 

Provisional tax? This country charges provisional tax? This scam makes the Mafia look legitimate!

SQM Research will be releasing its next Annual Housing Boom and Bust report in mid-September with our official forecast for 2015. That forecast will be elaborated on in detail at our 2014 Afternoon of Property Event, held at the Sydney Hilton hotel on September 18 – less than a month away!

Louis will be answering all the big questions, as well as assessing the key indicators as they currently stand –

•           Is it really a bubble?
•           Is there a correction looming in 2015 or are parts of the media blowing bubbles?
•           Will Sydney continue to outperform? And if so, where are the best places tobuy right now?
•           Detailed forecasts will provided for all capital cities for 2015
•           Key indicators weighed up and evaluated such as: stock one market, vendor sentiment, recent finance approvals and what they suggest, how are auctions are actually performing on the ground, are there any pockets/localities of weakness in this strong market, which areas have recorded the best long term growth, the rental market is weakening, why? What is the rental outlook for Sydney and each capital city?

Louis’ track record for assessing and forecasting the residential property market truly does speak for itself.

With the official AGENDA released as well, have you registered yet? 

Don't miss out!

Who should attend? 

  • Fund managers
  • Financial Planners
  • Real Estate Industry Professionals
  • Individual Investors

Why should you attend?

  • First hand insight into the Residential Property market from one of the country’s most respected and trusted Property Analysts – Louis Christopher
  • Insightful, unique objective content from a range of different speakers from all sectors of Property
  • CPD Points will be awarded!
  • Networking Opportunity
  • Perfect, cost effective event to invite your clients along to
Thank you to our Sponsors -


Falling Bond Yields - With Senior Investment Analyst, Leanne Truong

It was not long ago that industry experts were forecasting global bond yields to rise. In late 2012, improving economic fundamentals in both Europe and the United States saw the 10-Year Government bond yield in both markets rise to over 3%. Australia also followed a similar trajectory, with the Commonwealth Government’s 10-Year bond yield rising to over 4% from its lows in 2012. 

However, as a result of escalating geopolitical tensions in the Middle East and Russia, bond yields are once again falling and investors are once again on the global hunt for yield.

Falling bond yields has been welcoming news for the commercial real estate sector, with the yield gap between global yields and CBD office yields remaining elevated. Australia’s office market in particular has benefited, with record sales activity recorded in 2013. Much of the interest in 2013 came from Fund purchasers and foreign investors, which according to Savills Research accounted for 60% of the buyer profile in 2013. 

As can be seen in the above chart, the margin between long-term bond yields and property yields at 30 June 2014 ranged between 3.3% and 4.7%. This compares favourably to the historical trends, with margins typically recorded below 1.0%. 

* All based on total returns

The higher yielding equity sectors has also benefited from the low yield environment, with the S&P/ASX200 A-REIT, Financial and Consumer Staples Indices outperforming the broader S&P/ASX 200 Index between 2012 and mid-2013 when Australian bond yields were either falling or below 4.0%.

While the low bond-yield environment may persist for some time yet, investors should be aware that prices for high-yielding assets have been partly inflated by the global hunt for yield.
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