HSBC: Australian Economic Comment

6 Jul 2026 Last week s monthly figures for June showed that national housing prices are falling solidly. This is just the beginning. The recent big shifts in tax policy concerning investment properties, as well as the RBA's earlier three rate hikes, have rapidly sapped investor demand from the market. As we see it, first home buyers and other owner-occupiers are unlikely to want to try to catch a falling knife. With no rate cuts expected anytime soon (there is still some risk of another hike), we expect no near-term circuit breaker, which means the housing price correction is likely to continue for some time yet. Continue Reading