Skip to content
Finance News Australia
Finance News Australia

  • Home
  • About Us
  • Contact Us
  • Write for Us
  • Privacy Policy
Finance News Australia

Slowdown in Australian Housing Market Could Hamper the Country’s Growth

Admin, September 23, 2014November 9, 2023

Australian economy is going through a very strange phase. Previously, analysts predicted the housing construction industry will come to the rescue of the economy. However, that doesn’t seem to be happening any time soon.

In the first of this year, Australian housing sector was praised as the best performing among all sectors by a JP Morgan economist called Tom Kennedy. But the sector doesn’t look upright in the second half. Kennedy explained it by saying “The outlook for the second half of 2014 is less upbeat, however, with the fall in council building approvals suggesting residential construction activity will fade.”

In July this year, the bulk of construction was 8% less than that in January. Before July, the economy was enjoying a sourced-led growth, but the decline has caused the growth to halt.

Good news is the prospect for 2015 doesn’t seem bleak. One reason behind that is the anticipated increase in the volume of construction. Another reason is population growth due to immigration; it surfaces both buyers and labors.

The Westpac-Melbourne Institute leading index echoes what Kennedy said. A number of credible economic indicators were used to show the housing market’s contribution to the economy over the course of next six months will be ‘underwhelming’.

Added to that some credible pieces of warning that Australian housing sector is galloping towards a bubble burst and we have reason to cast a shadow over the sector’s growth. The main challenges for the housing market are growing home prices, limited stock of land and heavy taxes imposed upon the land at the time of transfer.

The property market is looking at the population growth but declining wages and increasing disposable incomes may play out to worsen the situation. Besides, as soon as the global improves, interest rates would climb up, making it difficult to borrowers to take loan.

Former treasurer of Australia Peter Costello said “It could still be a good time for property if things revert to normal. But there could be a fair bit of hardship that we have to go through and readjustment.” It seems hoping the market to revive in 2015 is the only thing that Australians could do at this moment.

Housing Market

Post navigation

Previous post
Next post
  • Banking
  • Business
  • Online Business
  • Career
  • College Education
  • Credit
  • Debt
  • Insurance
  • Health Insurance
  • Investments
  • Housing Market
  • Law
  • Loans
  • News
  • Personal Finance
  • Make Money
  • Retirement
  • Save Money
  • Technology
  • Trading

Recent Posts

  • Australia’s Housing Market
    Australia’s Housing Market? Read on to Discover
    by Admin
  • Free Home Improvements
    Free Home Improvements To Tempt Potential Buyers
    by Admin
  • Business Relationship
    Fatal Errors That Can Crash A B2B Relationship
    by Admin
  • Business Protection
    7 Point Checklist for Airtight Business Protection
    by Admin
  • branding
    How To Start Giving Your Brand A Helping Hand
    by Admin
  • Property Investment
    The Key Types of Property Investment You Need to Consider
    by Admin
  • Finance Advisor
    Top Tips for Choosing Finance Advisor in Australia
    by Admin
©2023 Finance News Australia