For the people wondering whether more interest rate hikes are needed to slow the economy...I think not.
ASIC's quarterly data showed insolvencies rising to the highest level since 2015 in the September quarter.
There was an alarming 783 construction insolvencies over the 3-month period,]
New South Wales alone saw 428 business entering external administration in Q3, which doesn't bode at all well for Sydney's housing shortage.
Annual insolvencies in the sector accelerated to around 2,300.
The worrying thing is that most of this related to cost pressures, rather than the plummeting demand for new projects, most of which has yet to flow through.
With the fixed rate mortgage cliff yet to flow through in full it's inevitable that construction insolvencies will continue to rise from here, adding further pressure to the dwelling shortage.
