There Are 80,000 Reasons Why Australian Housing Will Struggle to Rebound
- Property woes are weighing on consumer spending and inflation
- Reserve Bank is considering cutting interest rates in June
This article is for subscribers only.
Australia’s ailing housing market got a triple tonic this week as the central bank flagged interest rate cuts, the banking regulator eased lending criteria and the threat of tax changes that could have hurt property investment abated with the government’s re-election.
But there are at least 80,000 reasons to suggest there’ll be no rapid rebound as the worst housing slump in a generation spreads deeper into the economy. That’s how many apartments were completed in recent years in Sydney -- adding about 5% to the housing stock -- while Melbourne and Brisbane have also seen relatively large additions, according to the Reserve Bank.