I recently caught up with News24 (formerly Sky News) to discuss my outlook for Australia’s residential property market over the next six months.
As I explained, cutting migration may ease future demand. But it won’t help developers build the homes Australia is already short of.
The deeper problem is supply: planning delays, infrastructure bottlenecks and finance settings that make new projects harder to deliver.
I also explained that employment is the single most important thing to watch. Home owners and investors will continue to pay down their loans as long as they have jobs.
But if rates are pushed too high, unemployment will quickly rise and start to impact loan quality for the big banks.
