Cracks are appearing in Australia’s housing construction boom and there are fears it will peak in the next 12 months.
Many have touted the property sector as the nation’s next big hope for the economy as mining investment fades, a hope supported by strong retail sales figures for June, published on Tuesday, which showed a splurge in spending by people renovating and fitting out houses.
But with the Reserve Bank of Australia preparing to give its quarterly outlook for the economy on Friday, financial analysts at the investment bank Nomura think the housing boost may soon run out of steam.
“Maybe we’ve fired that bullet,” said a Nomura strategist, Andrew Ticehurst.
via The Guardian