Australia Reserve Bank focuses real estate financial risks
Australia Reserve Bank focuses on real estate and China as biggest financial risks
Australia's apartment construction boom and the health of China's economy, inexorably linked, have dominated the Reserve Bank's latest commentary on financial risks.
Tighter access to credit for households could pose near-term challenges in some medium and high-density construction markets given the large volume of building activity that was started several years ago," the bank warned in its half-yearly Financial Stability Review. Reports ABC, Michael Janda
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Date: April 15 at 7:56 PM
Published by: ABC News
Reporter: Michael Janda
Category: Australia Real Estate
Tighter access to credit for households could pose near-term challenges in some medium and high-density construction markets given the large volume of building activity that was started several years ago," the bank warned in its half-yearly Financial Stability Review. Reports ABC, Michael Janda
"This new supply may weigh on prices and rents in these areas," the RBA warned. If that occurs, investors will need to service their mortgages while earning lower rental income and any households facing difficulties making repayments may not be able to resolve their situation easily by selling the property."
Click here to view the orignal article
Date: April 15 at 7:56 PM
Published by: ABC News
Reporter: Michael Janda
Category: Australia Real Estate