Australia's Housing Slump May Add Sharply to State Borrowings
Dow Jones
Yesterday
2240 GMT - Australia's housing market slump will have a big impact on state government tax revenues, UBS says in a note to clients. They may need to issue an additional 35 billion Australian dollar in bonds during the coming four years to fill the revenue void, it adds. UBS assumes that so-called stamp duty on property sales falls 20% in 2026-27, remains flat in 2027-28, and rebounds 10% in each of the subsequent two years. A 20% fall in stamp duty in 2026-27 would correspond to a 10% fall in property prices. Higher bond yields could also add up to 5.5 billion dollars to state borrowing over the forecast period.
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