Australian Property Market Slump
The topic that has been mostly in discussion in the last few months, is the property market downturn in Australia. The housing market has witnessed a continuous fall in housing prices in the last few months, weakening the prospects for economic growth. The recently released data by the Australian Bureau of Statistics indicated a fall in housing prices throughout the Australian capital cities during March quarter 2019. During the quarter, the sharpest fall was witnessed in Sydney of 3.9 per cent, followed by Melbourne of 3.8 per cent as indicated in the below table:
The fall in house prices during the March quarter shaved off $170 billion from the total value of the country’s dwellings. According to few economists, a continuation of reduced demand from investors and owner-occupiers, and tight credit supply has resulted in the fall in property prices during the period.
The evidence suggests that the property slump has wiped off a considerable amount of household wealth in Australia in 2018. The sharp fall in property prices in Sydney and Melbourne has contributed towards the fall in household wealth.
Is Australian Housing Market Heading Towards Recovery?
The housing market conditions have worsened in Australia, but a ray of hope has emerged after the latest Home Value Index data showed that the rate of decline in housing prices has slowed down in May 2019. The conditions improved due to the rising auction clearance rates and strengthening market sentiments with ease in lending regulations proposed by the Australian Prudential Regulation Authority.
According to the market observers, the reduction in interest rates and the re-election of the Coalition government would provide a boost to the Australian property market soon. Market researchers have anticipated a growth in property prices across all the capital cities of Australia by next year. It is expected that the national index for home values would observe a steady recovery in 2020, with a modest recovery in Sydney and Melbourne.
Some market experts have forecasted the recovery of the residential property market in the second half of this year, with the housing prices in Sydney expected to grow by over 5 per cent by 2020.
ASX-listed Property Related Stocks
With an improvement expected in the Australian property market soon, investors might be interested in the property-related stocks trading on the Australian Stock Exchange. Some of the ASX-listed property related stocks have announced a decent dividend recently. Let us have a look at these stocks and their dividend updates in some detail:
Cromwell Property Group
A diversified real estate investor and manager, Cromwell Property Group (ASX: CMW) operates in three continents and has a global investor base. The company manages, owns and invests in commercial property. The company’s platform is spread across 15 countries throughout New Zealand, Australia and Europe.
The Group recently announced a dividend of AUD 0.0181 for its fully paid ordinary/units stapled securities. The dividend is related to a period of one quarter. The dividend is to be paid on 23rd August 2019, with the record date and ex-distribution date of 28th June 2019 and 27th June 2019, respectively. The Group did not provide any information on the percentage of franked or unfranked dividend. The DRP (Dividend/Distribution Reinvestment Plan) will be applicable on the distribution, but the DRP Price has not been disclosed yet.
The DRP price will be the average of the daily volume weighted average price of Stapled Securities sold on ASX during the ten Trading Days immediately prior to the Plan Record Date to which the Distribution relates.
As on 28th June 2019, the annual dividend yield of the Group currently stands at 6.25 per cent.
CMW’s stock last traded at AUD 1.155 (as on 28th June 2019), down by 0.431 per cent relative to the last closed price. Around 11.57 million of the Group’s stock traded on 28 June 2019. The market capitalisation of CMW at the time of writing stood at AUD 2.59 billion. The stock has performed quite well in the past, generating a YTD return of 17.77 per cent.
An integrated property group headquartered in Australia, Goodman Group (ASX: GMG) operates across North America, New Zealand, Brazil, Australia, the United Kingdom, Asia and Europe. Goodman Group is the largest industrial property group listed on the ASX. The Group comprises of the stapled entities Goodman Logistics (HK) Limited, Goodman Limited and Goodman Industrial Trust.
On 24th June 2019, the Group informed about an estimated dividend of 15 cents per unit for its fully paid ordinary/units stapled securities. The announced dividend is related to a period of six months, payable on 9th September 2019. The ex-distribution date and the record date of the dividend were reported as 27th June 2019 and 28th June 2019, respectively. The Group disclosed that they do not have a Distribution Reinvestment Plan on this security. It was mentioned by the Group that 100 per cent of the dividend will be unfranked.
The annual dividend yield of the Group currently stands at 1.97 per cent as on 28th June 2019.
On 28 June 2019, GMG’s stock last traded down by 1.443 per cent at AUD 15.030. With ~5,745,138 number of Group’s stock in trade, the market capitalisation of the company stands at AUD 27.66 billion. The 52-week high and low value of GMG was recorded at AUD 15.545 and AUD 9.520, respectively. The stock has generated a huge return of 42.79 per cent on a YTD basis. Also, it has delivered a return of 987.63 per cent since it began trading on the ASX.
Carindale Property Trust
Listed on the ASX in 1996, the Carindale Property Trust (ASX: CDP) holds a 50 per cent interest in one of Brisbane’s largest regional shopping centre, Westfield Carindale. It is managed by a member of the Scentre Group, Scentre Management Limited.
A fully paid dividend of 18.1 cents per unit was announced by the Trust on 24th June 2019. The declared dividend is related to a period of six months, carrying a payment date of 30th August 2019. The Trust informed that the dividend amount is an estimated one and the actual ordinary amount will be announced on 22nd August 2019. The ex-date and the record date of the dividend were mentioned as 27th June 2019 and 28th June 2019, respectively. The Trust does not have a securities plan for dividends/distributions on this security. Also, 100 per cent of the declared dividend will be unfranked.
As on 28th June 2019, the annual dividend yield of the Trust currently stands at 5.26 per cent.
CDP ‘s stock last traded, lower at AUD 6.850 on 28th June 2019, with a fall of 0.030 per cent. The market capitalisation of CDP stands at AUD 481.6 million. The stock has generated a negative return of 3.78 per cent on a YTD basis. Also, the stock has delivered a negative return of 6.27 per cent and 2.82 per cent during the last six and three months, respectively. However, the performance of the stock improved during the last month as it has delivered a positive return of 2.69 per cent.
Created in October 2018, Aventus Group (ASX: AVN) is Australia’s largest fully integrated developer, owner and manager of large format retail centres in the country. The Group comprises of the Aventus Capital Limited and Aventus Holdings Limited. It has a portfolio of around 20 centres worth $2.1 billion in Australia.
The Group informed about a dividend of 4.18 cents per unit for its fully paid ordinary/units stapled securities. Payable on 30th August 2019, the dividend was declared for the quarter ending 30th June 2019. The record date and ex-date of the announced dividend were mentioned as 28th June 2019 and 27th June 2019, respectively. The dividend amount is an estimated one, and the actual ordinary amount will be announced by the Group on 16th July 2019. It was cited in the announcement that 100 per cent of the dividend amount will be unfranked.
The Group has a Dividend/Distribution Reinvestment Plan (DRP) applicable at a DRP discount rate of 2 per cent. The DRP Price has not yet been disclosed by the Group.
The annual dividend yield of the Group currently stands at 7.17 per cent (as on 28th June 2019).
The Group’s stock last traded down at AUD 2.290 on 28th June 2019. The stock price has fallen by 0.020 per cent in comparison to the last closed price of AUD 2.310. Around 537.47 million shares of the Group currently stand outstanding. The stock has delivered a return of 7.94 per cent on a YTD basis and 6.94 per cent during the last six months.
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