Townsville bust harbinger for Perth?

By Leith van Onselen

The AFR is reporting today that Townsville’s property market is being hammered by falling prices and rents as the mining bust takes hold, and a flood of subsidised housing pushes up vacancy rates:

Townsville… is struggling to cope with an increase in subsidised housing and rising unemployment, which are driving up mortgage arrears and vacancies.

…“Rents are now falling and investors are unable to find tenants due to the oversupply,” [Domain Group’s Dr Andrew Wilson said]… Defence Housing Authority projects had added to the problem…

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.