New property market data shows house prices are declining in over 90% of Australian suburbs, driven by rising borrowing costs, economic weakness, and major tax policy shifts affecting investors. Economists warn the downturn could become the steepest on record, yet the Reserve Bank remains focused on further interest rate hikes to curb inflation. The combination of higher lending expenses, sluggish economic conditions, and structural changes in property investment has created a challenging environment for buyers and sellers alike. Analysts suggest the market’s struggles may not deter monetary policy tightening in the near term.
Cotality data reveals property prices are now falling in more than 90% of Australian suburbs, while economists expect market downturn to continueGet our breaking news email, free app or daily news podcastThe prospect of the steepest property market downturn in history will not stop the Reserve Bank from delivering a fourth interest rate hike as it battles to bring inflation back under control, economists say.New data from Cotality revealed house prices are now falling in more than 90% of Australian suburbs, amid a perfect storm of higher borrowing costs, a weak economy, and a once-in-a-generation change in the tax treatment of property investors. Continue reading...
