AUSTRALIA: Australia could suffer the biggest property price falls in the world this year.
Australian home prices are at risk of falling more than 10 per cent in 2019, the largest decline globally of all markets monitored by Citi Research.
“Among the roughly 60 economies under coverage, only 11 are at significant risk of notable home price falls over the next 12 months, and only one — Australia — might experience year-on-year declines exceeding 10%,” Citi says.
Citi says the downturn underway has been caused by several factors, nominating the impact of tighter macroprudential lending standards, reduced foreign buyer activity and a steep increase in new housing supply.
“Where prices have been rising rapidly for several years, including in Australia, authorities have deployed a range of macroprudential policies to slow credit growth… which have helped to cool the housing market,” it says.