Business – Page 102 – Michmutters

Property prices Australia: Home prices tipped to dive in wake of RBA rate hikes – but still remain well above pre-pandemic levels

Property prices across the country are tipped to fall up to another 5 per cent before the year is out, a new report forecasts.

The mid-year report by market analyst PropTrack predicts the average property price nationally will drop between 2 per cent and 5 per cent by the end of December.

By the end of next year, they are expected to fall further, potentially as much as another 10 per cent.

Watch the latest News on Channel 7 or stream for free on 7plus >>

PropTrack director of economic research and report author Cameron Kusher said the research highlighted the rapidly changing housing market.

“While there were already some signs that the rate of price growth was slowing at the beginning of this year, we were not expecting interest rates to rise until early 2023,” he said.

“There’s since been an outbreak of inflation, resulting in the Reserve Bank (RBA) lifting rates in each of the three months to July 2022.”

Property prices across the country are tipped to fall up to another 5 per cent before the year is out, a new report forecasts. Credit: James Ross/AAPIMAGE

The cash rate is currently 1.35 per cent but is expected to be hiked for a fourth consecutive month when the board meets on Tuesday.

That follows the release of the latest consumer price index figures, showing Australia’s inflation rate had risen to 6.1 per cent.

The PropTrack research operates on the assumption that the cash rate would rise to between 2.5 per cent and 3 per cent by the end of 2022.

They would then be subject to further hikes at the beginning of 2023 before remaining on hold, with the potential to be reduced late in the year or early into 2024.

Watch more on the RBA’s rate decisions in the video below

Kochie rips into RBA over rate rises.

Kochie rips into RBA over rate rises.

“The recent run-up in prices, coupled with reducing borrowing capacities as interest rates rise, is likely to see price falls broaden and then accelerate further into 2023, with the more expensive cities expected to record the largest price falls,” Kusher said.

The report predicts that the most expensive cities, Sydney and Melbourne, will lead the falls in prices.

They would decline between 3 per cent and 6 per cent this year and 9 per cent and 12 per cent in 2023.

According to PropTrack, the average price of a house and unit in Sydney is $1,435,000 and $780,000 respectively, meaning a worst-case scenario would shave $86,100 off the price of a house and $46,800 off the price of a unit before the year is out.

Hobart’s prices are forecast to decline between 1 per cent and 4 per cent this year and 7 per cent and 10 per cent next year.

Darwin’s are projected to drop between 0 per cent and 3 per cent this year and between 4 per cent and 7 per cent next year.

Canberra’s are projected to decline between 3 per cent and 6 per cent this year and 7 per cent and 10 per cent next year.

The only capital cities forecast to show a growth in prices for the rest of the year are Adelaide and Perth.

Property prices in both cities are forecast to increase by between 2 per cent and 5 per cent.

Brisbane’s prices may also increase, with a projection of between 2 per cent growth and 1 per cent decline.

The report, however, isn’t all good news for prospective buyers.

Even if there was a 15 per cent fall in property prices by the end of next year, home prices would still be well above the level they were prior to the pandemic.

“Though, home prices have grown at an exceptional pace over the last two years, rising 34 per cent since the pandemic onset in February 2020.”

The report predicts that the most expensive cities, Sydney and Melbourne, will lead the falls in prices. Credit: DAN HIMBRECHTS/AAPIMAGE

Economists predict another interest rate hike when the RBA board meets on Tuesday following the release of Australia’s inflation rate, which jumped to 6.1 per cent.

Treasurer Dr Jim Chalmers said the figures were “not news” to many Australians.

But he did forecast more interest rates would follow.

“They’ve flagged themselves, the Reserve Bank Governor has said that there are more interest rate rises to come and people need to brace for that,” he said.

“I’m not prepared to nominate a number. The Treasury, when they make their forecasts, they use an assumption about what the market is expecting and it’s not really for me to do that.

“But interest rates are going to go up further, and that will make life harder for people who are already dealing with these skyrocketing costs of living.”

Aussie men win gold in 4x100m freestyle

Aussie men win gold in 4x100m freestyle



Law firm Corrs Chamber Westgarth dumps church after 60 years

It comes amid growing tensions within the legal fraternity about the balance between social responsibility and commercial imperatives.

The decision to cut ties with the church has also raised questions about the future of prominent partner Richard Leder, who served articles at the firm in 1988, and has worked on behalf of the Catholic Church for 30 years.

Corrs Chambers Westgarth partner Richard Leder.

Corrs Chambers Westgarth partner Richard Leder.Credit:Justin McManus

Leder did not return calls from TheAge, but several friends and associates confirmed he was considering his options and had already received interest from other firms.

“He’s incredibly well respected. What people are asking is, ‘If you were to go, and the clients are coming with you, then we’d like to have a chat,’ ” one long-term friend said.

The Catholic Archdiocese of Melbourne refused to confirm if it would stay with Leder or seek legal representation elsewhere.

“Richard Leder is still a partner at Corrs Chambers Westgarth and we have great respect for him and his team. We are working through the transition process,” a spokeswoman for the archdiocese said.

“Our ultimate goal now is to ensure that this decision, and the transition, has no impact on survivors.”

Leder played a key role in developing the legal framework around the archdiocese’s compensation scheme known as the Melbourne Response, which was introduced by former archbishop of Melbourne George Pell in 1996.

Under the scheme, payments were capped at $50,000, later raised to $75,000, but it required victims to sign a deed of settlement that waived their right to take civil action against the Catholic Archdiocese of Melbourne.

Leder defended the Melbourne Response when he appeared before a royal commission in 2014 following repeated claims the church was primarily concerned with avoiding litigation and minimizing payouts.

Cardinal George Pell in 2018.

Cardinal George Pell in 2018.Credit:Just McManus.

Between 1996 and 2014, the Catholic Archdiocese of Melbourne made $17.2 million in ex gratia payments to 326 victims of clerical abuse under the Melbourne Response, with claimants receiving an average payout of $36,100.

Serial paedophile priest Kevin O’Donnell was responsible for the largest number of payouts, to 50 victims, including Emma and Katie Foster for abuse when they attended Oakleigh’s Sacred Heart primary school in the 1980s.

Their mother, Chrissie Foster, accused Corrs of profiting from the misery of victims.

“The Catholic Church has been a cash cow for these guys [Corrs Chambers Westgarth] for more than 50 years. The perpetrators of these crimes were protected by bishops and archbishops and allowed to continue raping children, and then you have a law firm fighting to stop compensation,” she told The Age.

During his appearance before the royal commission in 2014, Leder apologized to Foster and her late husband Anthony over insensitive and incorrect statements he made in correspondence to senior figures in the Catholic Archdiocese of Melbourne.

In letters submitted to the commission, Leder claimed the abuse suffered by Emma Foster at the hands of O’Donnell was “relatively minor” and doubted the sexual assaults were responsible for her drug problem.

“On the one hand, the link between what appears to be relatively minor abuse and treatment for a heroin addiction might be thought tenuous,” Leder wrote.

In other correspondence, Leder falsely accused the Fosters of kicking Emma out of home.


Chrissie Foster urged the church and its future lawyers to adopt a more compassionate approach in their dealings with victims.

In 2018, the Victorian government dismantled the Ellis defense when it passed legislation to close the legal loophole. Dozens of victims who accepted meagre payouts under the Melbourne Response have since launched fresh litigation.

Lawyer Michael Magazanik, a partner at Rightside Legal, has represented several clients who have successfully sued the church.

“One of Mr Leder’s key accomplishments for his client (Catholic Archdiocese of Melbourne) was helping design the Melbourne Response, the scheme that awarded very modest payments to legally powerless victims of clergy sexual abuse. Now, thanks to law reform, there’s a level playing field and the church has to face up to reality. Shock, horror, it can actually be sued. It lost at trial earlier this year for the first time – it had to pay our client more than $2.2 million,” Magazanik said.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.


ALDI supermarket fans going wild over $1.99 easy dinner hack

It’s the very simple meal hack that’s hitting dinner tables across Australia, thanks to a new “cult” $1.99 ALDI ingredient.

ALDI shoppers say stir-fries using the supermarket’s Chicken & Cashew Sauce is the “closest to takeaway” they’ve had – and is a hit with even the fussiest of eaters.

Watch above: ALDI shopper’s ‘genius’ checkout hack

For more Food related news and videos check out Food >>

To create the dinner, fans simply add the sauce to cooked chicken and veggies and then top with cashews – also available at ALDI – and serve with rice or noodles.

After scores of rave reviews on various Facebook groups, hundreds of ALDI shoppers are “jumping on the bandwagon” and trying the meal out on their families.

“Confirming husband and fussy kids loved it – great midweek dinner,” said one shopper on the Aldi Mums Facebook page.

ALDI’s $1.99 stir-fry sauce is a hit with many shoppers. Credit: Aldi Mums/Facebook

Added another: “So yummy, made this last night.”

Said a third: “Love this, regular at our house.”

One more responded: “Tried it last week and it’s awesome.”

Write another: “This is very yummy. We love it.”

Others commented that it was like visiting the local Chinese restaurant.

“It’s really authentic, like ordering takeaway,” said one.

‘It’s really authentic, like ordering takeaway,’ said one ALDI fan. Credit: Aldi Mums/Facebook

Another responded: “That sauce is excellent…closest to take away I have had.”

One more said: “I usually hate jar sauces. But absolutely loved this one! Delicious.”

On the back of the jar, it’s suggested that you serve the sauce with capsicum, onion, chicken, mushroom, cashews and Singapore noodles.

However, others say it also works with a few other variations – and can be easily doubled to create more serves.

“My kids loved it. I used a kilo of chicken and heaps of vegetables, with a whole jar, soy sauce, ginger and garlic paste,” said one ALDI fan.

Another ALDI shopper showed the ingredients she used to create the meal. Credit: Aldi Mums/Facebook

Said another: “I top mine with heaps of chilli, it’s so good. Cuts through the sweetness a bit.”

One more wrote: “Made this tonight for the fam bam. I used one kilo [of] chicken breast, one whole packet of cashews and capsicum and two jars of sauce and two packets of noodles.

“Fed family of four adults, two kids and two servings for lunch tomorrow.”

Shocking moment beachgoer is attacked by a seal.

Shocking moment beachgoer is attacked by a seal.