Real Estate giants in crisis
Peter Overton: Two of Australia’s real-estate stars are at the center of massive corporate shake-ups, pointing to tough times ahead for housing.
The Nine Networks Finance Editor Ross Greenwood has been following developments.
Ross Greenwood: Shares in both companies – McGrath Real Estate and Domain Group fell spectacularly today.
John McGrath, boss of McGrath Real Estate and regular on The Block television program, today saw his Chair, his Chief Executive, Company Secretary plus half the board resign.
It coincides with McGrath, Australia’s largest Real Estate Agents, saying it will lose money in the next six months as property listing have slowed with cooling capital property prices.
McGrath share prices fell plunged from $2.10 when it floated two years ago to just 52 cents. The shares today were down almost 10 per cent, and that says everything about what investors think about the housing outlooks for 2018.
Also – online real estate giant Domain Group said its CEO Anthony Catalano quit, just two months after the companies’ shares were listed on the ASX.
Domain’s major shareholder – Fairfax Media – owner of the Sydney Morning Herald and The Age.
Catalano, the father of eight, and owner of luxury resort Rae’s on Watego’s in Byron Bay citied family reasons for the resignation.
He didn’t want to move from Melbourne to Sydney – but its an embarrassment for Fairfax
Domain shares today collapsed 12 per cent on that news.
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Interviewed Cameron Kusher, Head of Research, Corelogic RP Data titled ” Is Sydney in a property market crash? .”
Interviewed Andrew Hagger, Chief Customer Officer for Consumer Banking, NAB titled ” Why did NAB sack 20 bankers? .”
Interviewed Chris Richardson, Chief Economist, Deloitte Access Economic titled ” How is the budget looking? .”
Interviewed Colin Heath, Banking and Capital Markets Leader, PwC Australia titled ” Banks surge with record profits .”