Australia’s Housing Market Faces Its Biggest Test in 30 Years
- Property prices expected to fall, building slow on rate rises
- Declining home values a challenge for winner of May 21 ballot
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One of the world’s most expensive property markets faces its biggest test in more than 30 years.
Australia’s A$10 trillion ($7 trillion) residential real estate sector will this year have to absorb the sharpest interest-rate increases since 1989, if bond markets are right. The Reserve Bank last week began its first tightening cycle in 11-1/2 years, shaking the confidence of consumers with some of the world’s highest debt loads.