Thursday, September 15, 2016

Richest Australian guy and developer warns that Australian banks must keep the party going, or else

Australia six weeks from a housing collapse, US report warns
It comes after Australia’s richest man, billionaire property developer Harry Triguboff, warned that a “very significant” number of Chinese buyers were now failing to settle their off-the-plan units and urgent action was needed.
Earlier, broker CLSA predicted a looming apartment “crisis” that would be kicked off by a wave of defaults forcing smaller developers into receivership, pushing down prices and potentially causing wider contagion that could lead to a recession.
The ISSA described moves by Australian banks from July this year to restrict or even withdraw funding to foreign property investors as “almost cartel-like policies”.
“The policies, now in place by all major Australian banks, were instituted in anticipation of an economic downturn internationally and domestically, but which, in fact, actually trigger or exacerbate such a downturn,” the article said.

1 comment:

Dana Sebastian said...

It will likely also have a broader impact of depressing housing prices across the whole economy. It is a kneejerk response to fraud concerns.