Falling housing prices will slow new home building and could leave development hotspots such as the Gold Coast with a glut of unsold stock that contracted buyers can no longer borrow enough to buy in two years’ time, economists and developers say.
House values – which new Cotality data show were on track to hit the fastest downturn in 40 years – and higher interest rates hit the housing development pipeline with a double whammy that raised the cost of new homes, even as existing ones became cheaper.
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