Australia real estate continues to slowly decline. In Sydney, the average decline is 13% from its peak. Some neighbourhoods are even worse. Construction companies are feeling the burn. Foreign investment has slowed to some degree which is having an impact but the reality is that the global economy is slowing. Every country is under pressure right now.
Just like in Canada, a large percentage of the Australian economy relies on real estate to continue to expand. It’s not just about building houses. There are many services, contractors, equipment, and more that go into each and every home. With such heavy reliance on one particular industry, when downturns occur, the effect can be dramatic. We have seen the tip of the iceberg when it comes to what Australia is headed for.
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Reserve Bank says rate cuts and QE possible as Australian housing enters ‘uncharted territory’ – ABC News (Australian Broadcasting Corporation)
https://www.abc.net.au/news/2018-12-07/reserve-bank-raises-prospect-of-rate-cuts-or-even-qe/10593562
Housing Dream Turned Nightmare Spurs a Backlash in Australia – BNN Bloomberg
https://www.bnnbloomberg.ca/housing-dream-turned-nightmare-spurs-a-backlash-in-australia-1.1217081
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Here Are the Winners From Australia’s Property-Market Downturn – BNN Bloomberg
https://www.bnnbloomberg.ca/here-are-the-winners-from-australia-s-property-market-downturn-1.1222704
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Chinese Exodus Exacerbates Australia’s Property Slump – BNN Bloomberg
https://www.bnnbloomberg.ca/chinese-exodus-exacerbates-australia-s-property-slump-1.1225533
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Home builders start laying off workers as they face sharp downturn – ABC News (Australian Broadcasting Corporation)
https://www.abc.net.au/news/2019-03-22/home-builders-face-big-housing-downturn/10925890