Pete Wargent blogspot

PERSONAL/BUSINESS COACH | PROPERTY BUYER | ANALYST

'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Sydney Morning Herald.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Wednesday, 21 August 2019

Defaults blow out

Settlement defaults

Interesting tidbit from Stockland's FY 2019 presentation, amidst quite a number of other ambiguous disclosures:


Source: Stockland Group (ASX: SGP)

Master Builders Australia sees no near-term end to the building slump.

MBA sees the nadir in the construction cycle not being reached until FY 2021 at just 167,000 dwelling starts (down from a peak of 234,000 in FY 2016).

MBA further believes the recovery will only get to 187,000 housing starts by FY 2024.

Credit conditions and negative sentiment towards new high-rise apartment developments seem likely to stymy new dwelling supply over the coming 5 years.

I discussed some of the implications of the coming downturn in a report here last year.