Weekly Update: Canada and Europe Cut Benchmark Interest Rates

In this week’s edition of Winston’s Weekly, Manny Anton and Winston Sammut discussed the latest updates in the property market, both in the US and domestically in Australia.

The US markets have been reacting to various data points, including labor market data and manufacturing numbers, which have led to a decrease in yields. The Bank of Canada and the European Central Bank have also cut their benchmark rates, signaling a trend towards lower rates globally.

In Australia, there are concerns about the economy heading towards a recession based on recent GDP numbers. However, the property sector has been performing well, with REITs seeing positive gains. The apartment market, in particular, has seen strong demand due to limited supply, with prices holding up.

Winston Sammut highlighted Mirvac as a key player in the Australian apartment market, with potential opportunities for investors. He also discussed US private equity giant Blackstone’s acquisition of homes in the UK, emphasizing the strong demand for family apartments in the US market.

Looking ahead, investors should watch out for distributions in the property sector for the June quarter. Lendlease’s decision to sell one of its US construction businesses indicates a shift towards focusing on the Australian market.

In a lighthearted moment, Manny Anton questioned Winston Sammut’s support for the Queensland rugby team during Origin matches, despite his Melbourne roots. Winston explained his rationale, citing his non-New South Wales background.

Overall, the property market continues to show positive signs, with opportunities for investors in both the domestic and global markets. Stay tuned for more updates in next week’s edition of Winston’s Weekly.