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The Wrap: CBA & BNPL, Online Retail And Post-Covid Trends

-CBA enters BNPL to protect market share -New vehicle sales up 22% in March -Online marketplaces ripe for consolidation -Employers with hybrid work strategies could have 20-25% remote employees By Mark Story CBA’s BNPL entry Having taken a stake in the buy now pay later (BNPL) firm Klarna in 2019, Commonwealth Bank ((CBA)) is launching its own BNPL product to the bank’s consumers, which can be used anywhere Mastercard is accepted. Morgan Stanley believes Commonwealth Bank’s decision to launch a BNPL offering was in part driven by desire to protect its market share with younger customers. The broker notes, CBA has around a 45% market share with 18-24 year olds, which is also a key market for the BNPL sector. Morgan Stanley also suspects by having its own BNPL offering, CBA can protect its customer spending data from being shared with other financial providers.

Vection to Acquire Leading Australian archviz studio

Vection to Acquire Leading Australian archviz studio ASX:VR1) has announced the proposed acquisition of leading Australian archviz studio, Blank Canvas Studios. Vection Technologies plans to leverage Blank Canvas’ real estate visualisation expertise to attract more mid-market customers as part of its broader global growth strategy to leverage its 3D, Virtual Reality ( VR) and Augmented Reality ( AR) product offerings in industry-specific verticals. Founded in 2017, with studios in Perth and Sydney, Blank Canvas specialises in architectural visualisation through 3D imagery and 3D animation, partnering with some of Australia’s leading residential and commercial developers, including Mirvac, Blackburne, Finbar, Mustera Property Group, Megara, Vicinity Centres, AMP Capital, Development Victoria and Dexus Wholesale Property Fund.

The Wrap: Strong Housing, Ag Prospects, Trans-Tasman Travel

-National house prices up 2.8% in March -Auction clearance rates hit record 83% -Melbourne CBD assets under greatest pressure -Woolworths sustains market share gains over Coles By Mark Story Housing recovery: A tailwind to economic growth Having delivered the strongest monthly price growth since 1988, national house prices were up 2.8% in March from February, which underscores broad-based strength across loan demand, construction and turnover; and all are expected to provide a tailwind to broader economic recovery. While detached house prices continue to lead the strength (3.1% for the month, and 6.0% for the year), price growth from apartments this month was also solid (1.9% for the month, and 1.1% for the year). By state, strength was led by Sydney (up 3.7% for the month), with Melbourne and Brisbane prices increasing 2.4% for the month and Perth 1.8%.

Golden days are over : retailers win battle as rents reset

‘Golden days are over’: retailers win battle as rents reset Save Share Retailers are winning the battle for lower rents, securing 5 to 10 per cent reductions for short-term lease renewals and 15 to 20 per cent discounts for new leases as the pandemic forces landlords to the negotiating table. In the Sydney and Melbourne CBDs, where foot traffic and sales at specialty retailers have plummeted because of the absence of office workers and international travellers, some retailers are winning 60 per cent rent cuts from landlords desperate to keep premises occupied. A boarded-up store in Acland Street, Melbourne. Landlords have agreed to cut rents to keep stores occupied.  

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