RBA Sees Risks Shifting to Aussie Home-Builders From Home-Buyers
- Slowdown in Chinese demand for properties a risk to developers
- Commercial property in Brisbane and Perth also under pressure
New apartment blocks stand under construction in the suburb of Breakfast Point in Sydney, Australia, on Wednesday, Feb. 17, 2016. Australia's opposition Labor Party is proposing scaling back tax breaks for landlords that have helped fuel a 50 percent increase in property prices in capital cities since 2008.
Photographer: Brendon Thorne/BloombergAustralia’s central bank said lending risks in the economy have switched to residential developers from home buyers because of a possible apartment glut in inner-city areas.
The problem is probably worst in central parts of Melbourne and Brisbane, where new supply is geographically concentrated, and increasingly in Perth, state capital of resource-rich Western Australia, the Reserve Bank of Australia said Friday in its semi-annual Financial Stability Review.