Advertisement
The ABS released housing finance commitments on Friday, and the standout number was the flight of investors with a quarterly crash of 10.2%.
The total Q2 drop was -5.4%, with owner-occupiers offsetting it somewhat at -1.9%.
This is not an unusual magnitude of drop for a housing downcycle. Once we bottom out, I’d expect the new property tax regime to boost new builds more than established property prices, which is what we want.
Advertisement
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
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.
Advertisement