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This is why the property market isn’t slowing down

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According to the PropTrack’s Property Market Outlook August 2023 Report, the national property market in Australia is expected to witness an increase of up to 5% by the end of 2023.

The report analyzes consumer behavior by extracting property market data from the 12.1 million Australians who visit realestate.com.au each month. It indicates that the property prices have already experienced a 2.3% increase in the first six months of 2023.

Despite rising interest rates and relatively low wage growth, the property market has shown resilience this year.

The report attributes the price growth to a lack of supply of available properties for sale, leading to buyer competition. The forecast suggests that larger capital cities are expected to witness greater growth.

Houses in Brisbane and Adelaide have experienced the strongest gains so far, and the report projects prices to increase between 3% and 6% across the combined capital cities on an annual basis.

With the exception of Hobart and Darwin, all capital cities are expected to see positive price growth in the remainder of 2023.

Looking ahead, the report acknowledges challenges in forecasting the direction of the property market beyond 2023.

2024 uncertainty

A significant number of fixed-rate borrowers’ mortgages are set to expire from current interest rates of around 2%, potentially resetting to around 6%, which could impact borrower repayments in 2024. The outlook for 2024 remains uncertain, and the report forecasts modest price growth in that year.

Unemployment remains a key risk to the property market’s stability, as people’s ability to pay off housing largely depends on having a job and income. Official forecasts predict a rise in the unemployment rate, although the jobs market has been resilient so far.

The report highlights the need for a supply-side response to improve affordability, emphasizing the importance of structural fiscal and monetary policy reform in shaping the property market’s future.

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Money

Tech giants drive global mega-cap surge amid inflation relief

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Tech giants have taken the lead in propelling global mega-cap stocks to new heights.

This surge comes as a welcome relief for investors who have been closely monitoring the impact of rising inflation on the financial markets.

The tech sector, including giants like Apple, Amazon, and Microsoft, has been instrumental in driving the rally. These companies have reported robust earnings and strong growth prospects, which has boosted investor confidence. As a result, the market capitalization of these tech behemoths has reached unprecedented levels, contributing significantly to the overall rise in global mega-cap stocks.

The easing of inflationary pressures has played a pivotal role in this resurgence. Central banks’ efforts to tame inflation through monetary policy adjustments have begun to bear fruit, reassuring investors and stabilizing financial markets. As concerns over rapidly increasing prices recede, investors have become more willing to invest in mega-cap stocks, particularly in the tech sector, which has demonstrated resilience in the face of economic challenges.

Will the tech giants maintain their momentum and continue to lead the mega-cap surge, or are there potential risks on the horizon?

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Money

Real reason bosses want employers back in the office

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As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

 
The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

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Businesses cash in on Black Friday sales

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Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

 
Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured

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