Sydney Apartments Pose Financial Stability Risks, RBA Says
- City has added more than 80,000 apartments in past few years
- Assistant Governor Bullock says risks elevated but contained
This article is for subscribers only.
The apartment market in Australia’s largest city is “quite soft” due to a sharp rise in supply that’s increased risks to financial stability, a senior central bank official said.
Sydney added more than 80,000 apartments in the past few years, increasing the city’s housing stock by about 5 percent, Reserve Bank of Australia Assistant Governor Michele Bullock, who oversees the financial system, said in the text of a speech. In Melbourne and Brisbane, which also saw substantial construction, apartment prices have so far held up, she said.