HSBC says Australia’s home prices have started falling, with up to an 8% drop projected through end of next year
AI Market Summary
HSBC expects Australia's housing downturn to deepen, citing RBA rate hikes and less favorable tax treatment for investment properties that are eroding investor demand. A projected cumulative 8% national price decline through end-2027 implies a drag on household wealth, consumption, and housing-linked credit growth. This can weigh on domestic risk sentiment and marginally pressure the Australian dollar via a softer growth outlook.
Impact level
● Medium
Affected assets
NCFXAUD2USD/USDT-0.11%
AI Insight · NCFXAUD2USD/USDTAI Insight
▼ Bearish
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
HSBC chief economist Paul Bloxham said Australia’s home prices began to retreat in June, but the decline is far from over. He said investor demand has weakened quickly after recent tax policy changes affecting investment properties and the Reserve Bank of Australia’s three earlier interest-rate hikes. He forecast national home prices could fall by as much as 8% from now through the end of next year.
