Property and Infrastructure

BIS Shrapnel forecasts modest growth only for Australian property prices as a lack of affordability and higher interest rates will limit gains.

The minutes from the June RBA meeting, released today, show what we all knew already: the RBA is now firmly on hold.

UBS has made minor changes to its model portfolio to reflect May market action, while RBS has identified potential ASX100 earnings surprises in August’s reporting season.

Investors are currently nervous and FY11 earnings estimates may be too high but Citi still sees value in equities at current levels, while GSJB Were outlines its current preferences.

With steep discounts to more stable net tangible asset valuations, JP Morgan has become very keen on Australian real estate trusts, while Merrill Lynch favours retail over office.

Housing starts are up and investors are returning to the local residential market while REITs with US exposure are again riding the fortunes of the exchange rate.

Analysts can’t find much in the budget to impact on markets beyond what we already knew, but they are quick to point out the bullish assumptions contained within.

Recent reports by industry consultant BIS Shrapnel and a survey by National Australia Bank both point to improving conditions in Australian commercial property markets.

Morgan Stanley has identified some more small cap companies where it sees value, while Macquarie has Boart Longyear on its Marquee Ideas list.

The TechWizard reports he cannot get excited about Westfield’s prospects.