"The Party's Over" Down Under
In this Fairfax piece titled "The Party's Over", the post-boom psychology is evident. Does the US media even know that property markets overseas are caving in? "The economic slowdown was first felt last year by real estate agents, with the lowest auction clearance rates since the last recession. They watched as house prices in Sydney fell every quarter from March last year after doubling in the six previous years."
"The deflating house price bubble triggered the end of a construction boom. Bureau of Statistics figures last week showed apartment building approvals plummeted by more than a quarter in March. Overall home building approvals are now lower than at any time since the GST-induced slump four years ago."
"The construction slowdown has hit the big building companies hard. Harry Triguboff's Meriton Apartments had previously given itself a $400 million line of credit to cover unsold apartments. No one close to the industry will be surprised if a large builder collapses soon."
"Consumers stopped shopping when their house prices stopped rising, and small businesses have borne the brunt of the spending squeeze."