Real estate stock gains $ 1 trillion in value even as companies lay off staff

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Banks should test whether new customers can handle their repayments at an interest rate 3 percentage points higher than the actual loan rate. So far, banks have added 2.5 percentage points – known as the “sustainability buffer” – to the loan rate when assessing a customer.

APRA said it believes its actions will reduce the borrowing capacity of new clients by about 5%.

Treasurer Josh Frydenberg said a tightening in lending standards would likely affect the investor market.Credit:Justin mcmanus

Treasurer Josh Frydenberg said APRA’s move was well targeted, arguing that it would likely affect investors more than other borrowers.

“What’s been nice about this cycle compared to previous cycles is that more first-time owners, more owner-occupants are entering the market. And this decision will affect investors more than first-time buyers, ”he told Seven Network.

As NSW, Victoria and ACT approach key dates for their reopening of COVID-19 lockdowns, Australian Bureau of Statistics payroll figures released on Thursday showed the total number of people on corporate payrolls fell below pre-virus levels. , with women and young workers once again the most affected by the restrictions linked to the pandemic.

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The number of employees in companies fell by 0.7% during the fortnight preceding September 11, after a drop of 1.5% during the previous fortnight.

Victoria (down 1.8 percent) and ACT (down 2.3 percent) were the hardest hit while NSW slipped another 0.3 percent.

Since the lockdown began, there has been a 9.2% drop in the number of people on NSW corporate payrolls. NSW women saw a 10.2% drop in state payrolls while those aged 15-19 suffered a 28% drop.

It’s the same story in Victoria with its lockdown, which began several weeks after NSW. The total number of payroll jobs is down 7.2 percent, with women (down 8 percent) doing worse than men (down 6 percent).

The hardest hit area was ACT where jobs fell 12.2 percent.

Westpac senior economist Justin Smirk said small and medium-sized businesses were hit harder by jobs than previous closures.

“There is clearly a lot of pressure on small businesses in NSW and Victoria, but overall the recovery has a solid foundation to build on given the strength of the big companies,” he said. .


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