Iron ore slides below $US80 mark

The price of iron ore has extended its recent retreat, amid unrelenting negative sentiment about inventories of the steel-making raw material in China and demand for steel in the nation.
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Iron ore slid 1.3 per cent to $US79.36 a tonne on Monday night, extending its pullback from its February 21 high of $US94.86 to more than 16 per cent. It’s now at its lowest since January 9; it ended 2017 at $US78.87 a tonne. China’s futures markets were closed due to a public holiday.

“Traders are now concerned about the physical capacity at ports and their ability to hold any additional iron ore if the current pace of increases continues,” ANZ said.

The latest price setback for iron ore also comes as China’s central bank seeks to cool the nation’s property market by gradually tightening monetary policy through liquidity controls and higher market interest rates. Over the weekend, the People’s Bank of China lifted rates for loans for small- and medium-sized financial firms.

In addition, there are concerns about what may emerge from this week’s meeting of China’s President Xi Jinping and US President Donald Trump in Florida. Mr Trump has been hammering away at China for months about the value of its currency and the loss of US manufacturing jobs, but has yet to take any concrete action. Mr Trump also has signalled that his administration plans to overhaul international trade practices.

According to the latest SteelHome survey, iron ore inventory at 46 Chinese ports stood at 132.10 million tonnes on March 31, down 0.35 million tonnes or 0.26 per cent from the previous week.

Credit Suisse analyst Matthew Hope last week said steel, and iron ore, fell mostly because speculators unwound bets as sentiment shifted. Mr Hope argued in a note that iron ore inventories were “not high” and, in contrast, steel inventory in China is “relatively depleted”.

Li Xinchuang, the vice-president of the China Iron and Steel Association, last week told a conference in Perth that he expects more volatility in the price of iron ore, forecasting a range of $US55 to $US90 a tonne in 2017, averaging about $US65 for the year. In part that reflects what Mr Li sees as the result of increased iron ore output in China, with producers chasing the earlier surge in prices, as well as increased global supply.

China imported 90.3 million tonnes of iron ore in March, according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts.

If the estimate is matched by official customs figures, due next week, it will be only the fifth time that monthly imports have exceeded 90 million tonnes, the other occasions being January this year, November and September last year and in December 2015.

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Land sales increase to $13 billion

‘s residential land market grew 6 per cent last year with 57,381 housing lots released to the market, according to a new State of the Land report.
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The analysis, released by lobby group, the Urban Land Development Institute, shows the number of transactions increased 10 per cent – 53,107 lots worth more than $13 billion sold in 2017.

The report, based on the National Land Survey Program researched by Charter Keck Cramer and Research4, covers 1200 new housing estates in major capitals.

The report, released at the UDIA’s annual conference in Perth, comes amid intense discussion about housing affordability and follows new ABS data showing ‘s population grew by 348,700 in the 12 months to September 2016.

Melbourne’s greenfields market is booming with a record 22,700 lots released in 2016 making up 40 per cent of the national market. Victoria also welcomed the lion’s share of new immigrants with 127,500 people moving to the state.

The number of lots released last year in Melbourne rose 14.5 per cent from the previous 2015 high. Turnover is so fast that Melbourne and Sydney have barely a month’s worth of stock available at one time.

UDIA Victorian chief executive Danni Addison said “Melbourne’s greenfield market continues to outperform other capital cities with a significant portion of the nation’s annual lot sales”.

“While the median lot price remains lower than the national median, Melbourne’s greenfield market is experiencing rapid price growth, which is concerning from a housing affordability perspective,” Ms Addison said.

Nationally, advertised median lot prices rose 10 per cent during 2016 and are up 24 per cent over four years. The median price of a lot in Melbourne rose 11.3 per cent in 2016 to $237,000 – the biggest price increase since 2010.

Sydney’s asking prices plateaued last year at $465,000 after jumping 35 per cent in the previous two years.

But the increased prices are not a national phenomenon. In Perth, median prices have fallen 12.5 per cent as the end of the mining boom cruelled the local market.

Villawood managing director Rory Costelloe said the mood in Perth was “subdued”.

“But the Melbourne market is certainly on fire, fuelled by migration. For the immigrants from India, the Middle East and Sri Lanka, they want to live in detached houses, they don’t want to live in apartments in the inner city,” Mr Costelloe said.

“In Sydney the market is still strong but the edge has come off a bit,” he said.

In Victoria, Villawood is selling as much in the regional city of Geelong as it has in Melbourne, he said, with buyers attracted by the infrastructure – hospitals and schools – already in place.

“For affordability, you’ve got Wyndham Vale, the further north or Pakenham but they just don’t have the infrastructure,” he said.

To maintain affordability, the report found median lot sizes shrunk to 407 square metres, from 428 square metres in 2015 and 458 square metres in 2014.

This move, which appears to maintain affordability, has effectively increased the price of land per square metre by 13 per cent to $602.

The State of the Land report predicts around 54,000 lots will be released this year with capacity constrained in Sydney and Melbourne and weaker demand in Perth and Adelaide.

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Broadway Plaza in Punchbowl goes for $41.2m

Real Asset Management Group has emerged as the buyer of the Broadway Plaza, Punchbowl, paying $41.2 million to creditors PPB Advisory.
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It comes as food-anchored neighbourhood shopping centres are gaining traction for investors with their proximity to high-density catchment areas and development potential.

The head of real estate at RAM, Will Gray, said the acquisition was in line with the company’s retail strategy along ‘s eastern seaboard.

“We are delighted to have secured a recently developed shopping centre in the tightly held Sydney metropolitan area for our investors on attractive terms,” Mr Gray said.

“The fundamentals for the centre looking forward are exciting and challenging, and we will certainly need an active and concentrated approach to execute on our strategic long-term plan to deliver maximum value to our investors.”

Colliers International’s James Wilson, director of NSW retail investment services, and Matthew Meynell, head of investment services, brokered the deal in conjunction with Philip Gartland and Lincoln Blackledge from Stonebridge Property Group.

“This benchmark result highlights the huge appetite for NSW neighbourhood shopping centres,” Mr Wilson said.

“The campaign demonstrates the ability of prudent retail investors to constantly review their hurdle rates, in line with the evolving market conditions, in order to deliver on their investment strategy.”

“The unprecedented interest from established and emerging investors, and subsequent result, reflects the lack of quality investment opportunities in metropolitan Sydney,” Mr Meynell said.

Mr Gartland said there is move back to buying retail stratum centres by a range of purchaser groups, particularly in tightly held inner metropolitan locations.

“Stratum retail was a tougher sell in the past, but with the improvement in mixed-use development design and retail/residential compatibility, coupled with the increasing density and hence value of land, well-anchored stratum titled retail centres have shown yields more akin to traditional freehold sites in recent years as more and more buyers accept its longevity and evolvement as an asset class,” he said.

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Suburban shops selling for record rates

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Suburban shops are selling for record rates. Fitzroys’ Chris Kombi and Chris James sold 66 Koornang Road in the Carnegie shopping strip for $3.35 million. The sale set a new record for a single-fronted shop in the area on a record low yield of 2.53 per cent and at a land rate of 15,800 per square metre. The site sold with a 7 x 5 x 5 x 5-year lease to Vietnamese restaurant Pho 66 returning $84,872 per annum plus outgoings and GST.

West Melbourne

A 112 sqm vacant lot with a residential development permit sold before auction for $1.403 million, Colliers International’s Daniel Wolman, Oliver Hay and David Sia said. The land at 143 Rosslyn Street sold at a rate of $12,526 per sqm to a Chinese investor. The site had a permit in place for nine apartments and a commercial space.


A commercial developer has snapped up a 3,714 sqm site at 492 – 494 Pascoe Vale Road for $3.4 million. Fitzroys agents Chris Kombi, James Lockwood and Terence Yeh said the site was mixed-use zone and the new owner planned to build shops on the property.

Hawthorn East

Three bidders vying for a retail property leased to Shanklin Caf?? at 500 Tooronga Road ended up pushing the price to $1.561 million, a yield of 3.4 per cent. The cafe pays a passing rent of $54,000 net per annum, GormanKelly’s Chris Alcock and Mario Nobrega said.

Port Melbourne

An owner occupier has paid a $1.6 million for a 300 sqm warehouse at 339 Williamstown Road. The sale price equates to $5,333 per sqm, a significant premium for the area, Knight Frank’s Ben Hackworthy said.


Colliers International’s Damian Marinelli says strata assets are increasingly being purchased by self-managed super funds. An SMSF purchased the office/warehouse Unit 16/189 at South Centre Road for $310,000, he said.


A shop leased to Zia Rina’s Cucina at 857 High Street sold for $1.22 million under the hammer, Paul Rizzo of Ray White Commercial Oakleigh said. “There were three main bidders at the on-site auction and the eventual sale price was $120,000 over the vendor’s reserve,” he said.

Burwood East

A two-storey building at 13 Royton Street has sold for $850,000 to a local investor, George Kelepouris of Ray White Commercial Oakleigh said. The property transacted on a yield of 5.6 per cent. “We had a great response to this investment property which is currently leased to two tenants and generating combined net rental of $47,869 per annum,” he said.


A Chinese BBQ restaurant will open at 449 High Street after Fitzroys’ Terence Yeh struck a lease deal at $108,000 per annum plus outgoings and GST. The two-level, 355 sqm building has a ground floor area of 280 sqm and first floor of 75sqm.


Angus Clark and Al Armstrong of Cameron sold a 3,383 sqm parcel of Industrial 1 zoned land at 192-196 Discovery Road at auction for $1.17 million, a rate of $346 per metre.



Italian newspaper Il Globo will move to 459 – 461 Victoria Street after leasing the 850 sqm property for five years for $90,000 per annum net, Raff De Luise and Julian Materia from ICR Property Group said. Il Globo is owned by the Valmorbida family who featured on the BRW rich families list in 2014 with $328 million.


Allard Shelton has leased 28a-30 Ferguson Street to The Greenery Store and Larder, a licensed caf?? and retail space that offers homewares, giftware and apparel. The 230 sqm shop was leased for $110,000 pa plus gst on a 10 x 10 year lease, James Gregson said. The Greenery will pair with other eateries, Hellenic Hotel, Crowded House Caf?? and Mez Mez, in the area.


The Kyda Group has recently taken up a 2073 sqm tenancy at 17 Stoney Way on a three-year lease with multiple further two-year options to renew. Colliers International’s Charlie Woodley and Ashley McIntyre handled the transaction on behalf of a private landlord for $140,000 per annum. Meanwhile, bedding group Snooze took an 18-month tenancy at 19 White Street, Maribyrnong, for $58,500 for a full term, occupying the 1,200sqm warehouse until arrangements are made for its next move into a larger facility, Mr McIntyre said. In another deal, Platinum Safes will move into new premises at building 6, 19-23 Paramount Road, West Footscray.


Intertrading will relocate after leasing a warehouse with secure yard at 4 Fiveways Boulevard. Intertrading took a four-year lease on the 2,423 sqm building, paying a net annual rental of $212,187, Knight Frank’s Stuart Gill and Luke Crozier said. Mr Gill said the property was leased within a few weeks of marketing. Meanwhile, Pouch Direct will lease a 743 sqm warehouse at Unit 2, 42-44 Garden Boulevard in Dingley on a 2+2 year basis at a net annual rental of $64,000 pa net, Dean Kimitsis said.


Mid-tier commercial and industrial sales, leasing and property management agencies Gray Johnson and Kevin Sheehan Property have merged. The merged agency will trade as the Gray Johnson Eastern operating from the Kevin Sheehan offices in Wellington Street Kew, Gray Johnson managing director Matt Hoath said.

Land developer Dacland has appointed former Metro Property Group chief financial officer, Travis Deans, as its chief executive officer.

Submissions to [email protected]苏州夜总会招聘.au

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NSW Attorney-General to announce $6m rescue package for legal centres

The state’s new Attorney-General, Mark Speakman, will announce a $6 million rescue package for community legal centres to fix a federal government funding shortfall that was set to plunge the sector into crisis.
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In one of his first decisions in his new role, Mr Speakman will announce the two-year funding boost on Wednesday.

Community legal centres, which provide free legal advice to vulnerable and disadvantaged groups, were facing a wave of job losses and closures from July 1 as federal funding was set to be slashed by 30 per cent.

In NSW, this translated to a cut of about $3 million a year.

Mr Speakman had urged the federal government to “rethink its position” before the May budget but had not received a commitment from his federal counterpart, George Brandis.

The funding package is expected to save 30 lawyer positions in Sydney and across the state, and prevent the closure of community legal centres in Katoomba and Tweed Heads.

Under the first year of the deal, funding for legal centres will be maintained at existing levels so that no centre is worse off as a result of the federal cuts.

A review will be conducted during financial year 2017-18 to determine how the second year of funding is distributed between legal centres.

Mr Speakman said the package was “a major win for vulnerable and disadvantaged people across the state who rely on CLC lawyers for free advice on critical issues … ranging from domestic violence and victims’ support to debts and tenancy disputes”.

Community Legal Centres NSW chair Linda Tucker, who campaigned for the funding, welcomed the announcement and said the federal government now needed to “chip in their fair share, so CLCs can meet existing demand and ensure that everyone has access to justice”.

“From tenancy and debt help, to child protection and domestic violence, the early intervention work of community legal centres saves people from further emotional and physical harm, preventing knock-on effects across the wider justice and health systems,” Dr Tucker said.

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