Aussie rent shock returns

Goldman shows why Australia’s rental shock isn’t over.

Weekly data from SQM suggest growth has picked up somewhat over recent months (Exhibit 6). The SQM data tends to lead CPI rent inflation, given SQM measures average rents across the flow of newly advertised properties, whereas the ABS measures rents across the entire stock of rental properties.

The driver is, of course, immigration, especially so given that Alboflation in energy has destroyed the dwelling construction market.

In the last cycle, we had Chinese developers running wild; this time, we have naught but Albo’s centrally planned missed targets.

Will Australia’s youth ever wake up?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.