Spring Listings Flood Weakens Australian Property Market
As the spring selling season approaches, property analysts are warning of a surge in listings that could put even more pressure on the already weakened residential market.
The Reserve Bank of Australia's decision to keep interest rates open for further hikes has added to concerns about the market's stability. One housing developer, Bathla Group, recently entered administration with $3.6bn in debts and 15,000 properties under construction in Sydney.
SQM Research Group chief executive Louis Christopher warns that the spring selling season will bring a 30-40% lift in listings, exacerbating an already significant oversupply problem. The market is currently awash with about 30,000 more unsold properties than average.
Christopher notes that 'those property owners who have expectations over and above the market... they're not going to sell in this market' due to low demand.