ASX-listed property giant Mirvac has issued a stark warning, predicting that home building in Australia is “about to fall off a cliff.” The company, which develops and manages a diverse portfolio of property assets including residential, retail, and commercial properties across Australia, indicated that smaller developers would struggle to make projects financially viable. This comes as builders report a significant drop in buyer interest and attendance at new display homes, signalling a cooling in the residential construction sector.
Adding to concerns about the economic climate, department store chain Myer has announced a substantial loss amid a challenging consumer crunch. Myer, a prominent Australian retailer offering a wide array of fashion, homewares, cosmetics, and electronics, noted that choppy trading conditions contributed to its financial setback. In related news, retail veteran Solomon Lew is now expected to join the company’s board in September, several months later than originally planned, following the disappointing financial results.
The broader Australian share market saw little movement, with the ASX paring early gains to trade largely flat by midday. Individual company performances varied, however, with IDP Education sinking after a takeover rejection, and telecommunications provider Tuas experiencing a 17 per cent drop due to slowing subscriptions. Insurance group IAG also saw its shares fall after a regulator blocked one of its bids. These developments unfold as economists now anticipate the Reserve Bank of Australia could implement a double rate rise before Christmas, signalling further pressure on household budgets and economic activity.
