From The Australian comes the excellent Brain Johnson:
Ahead of CBA’s (CBA) highly-anticipated annual profit next week, CLSA analyst Brian Johnson today told clients he was concerned the housing market will become “bifurcated”, with Sydney and Melbourne remaining “uber-expensive” while Brisbane and Perth were “vulnerable to a regional collapse akin to the Queensland’s Gold Coast during the GFC”.
“Every channel check we do highlights Perth/Western Australia as particularly vulnerable given already weakening property prices, slowing population growth, a slower WA economy, elevated housing starts and falling rents,” Mr Johnson, a veteran banking analyst, said.
…He said while Westpac’s housing portfolio appeared riskier than CBA’s, the latter’s acquisition of Bankwest left it “most vulnerable to a Perth/WA housing price correction”.
Only one comment, if Perth and Brisbane (and Adelaide) prices do “collapse” then so will Sydney and Melbourne as psychology is hit hard, bank profits fall and credit standards rise everywhere.