none

AUSTRALIAN HOUSING MARKET ON THE EDGE?

20-09-2016
by 
in 

The Australian housing market is in a precarious position, and has “roughly six weeks” before a collapse of the market pulls the remarkable climb of the past few years into the dust.

At least, that’s what an exclusive report from news.com.au states, citing an article from the International Strategic Studies Association that claims a potential housing collapse could be caused by the Australian bank’s “crackdown on foreign investor lending”.

The argument they put forward is easy to follow; a decrease in foreign investment would negatively impact the property market (both residential and investment), and the decreased cashflow could result in the Government being unable to fund “major programs in the defence and civil sectors”.

The ISSA’s speculation that programs like “the Royal Australian Navy’s submarine acquisition program, budgeted at $50 billion, may be the first major defence casualty.”

While the housing market has already been predicted to slow at an acceptable rate, others are not as optimistic, and are preparing to cover themselves from any backlash from dropping prices.

Previously, property broker CLSA had predicted that dropping prices would lead investors to default on properties, further leading to the ruination of smaller developers, which would in turn push down prices further and lead to a negative spiral.

Australia’s richest man, Harry Triguboff, says that he has already seen signs, with a “significant” number of Chinese developers beginning to default on property.

Amidst the foundations of the ISSA report appears to be a great deal of speculation, however. Spokespersons from NAB and Commonwealth Bank have downplayed the concerns of an immediate spiral towards a recession.

The ISSA’s choice of pinpointing defence contracts like the submarine program also appear to be chosen for shock and awe, rather than a full analysis of the Australian government’s programs and commitments.

As is usual, negative speculations and panic-motivated decisions are likely to do more harm than the bank’s measures to prepare for a gentle and expected slowing of the housing market.

Related news & editorials

  1. 14.12.2018
    14.12.2018
    by      In
    The convenience of opening doors or logging onto computers with the wave of a hand is now possible with new technology that enables humans to be microchipped.
    A human microchip is the size of a grain of rice and it is implanted into the hand, between the thumb and forefinger, in a quick and fairly... Read More
  2. 14.12.2018
    14.12.2018
    by      In
    An additional $500,000 Federal Government investment is set to allow Deakin’s ManuFutures advanced manufacturing business incubator to set up a new acceleration programme for its members. The new ManuFutures Export Acceleration Programme (MEAP) will support the emerging businesses to strengthen... Read More
  3. 13.12.2018
    13.12.2018
    by      In
    After a long stint as the Asia-Pacific Managing Director of 600 Machine Tools, Cliff Purser is retiring from his post in Sydney, and returning to live in New Zealand.
    The genial Englishman has led the 600 team in Australia since transferring in November 2004 from the position of New Zealand... Read More
  4. 13.12.2018
    13.12.2018
    by      In
    Adelaide has been chosen as the headquarters of the newly established Australian Space Agency.
    The Australian Space Agency was officially launched on 1st July and received $41 million over four years from 2018-19 in the federal budget to “grow the Australian space industry,” including $26 million... Read More