I wouldn't fix yet. In normal circumstances you would have done...

I wouldn't fix yet. In normal circumstances you would have done so already, but we are in an environment of structrually low rates in the backdrop of insanely high personal debt levels, and an already peaked mining investment boom. That means interest rate sensitivity has never been this high. Even small rises in the cash rate and hence cost of borrowing will have a profound effect. People harp on about the 18% interest rates of the 80's or whateer, but a borrowing rate of 7-7.5% today would see the equivalent if not greater stress level because of leverage levels.

The recalcitrants at the RBA are trying to replace the mining boom with a demand side driven rise in construction by keeping house prices high, but these mippets don't realise construction can't boom until the supply side of the housing equation is resolved. They figure rising prices will just do the trick.

Sector Lead, as for this comnment:

"and in case you didn't get it -

the 19% referred to the SYDNEY property market

not mining dominated WA.

but I suspect you knew that already"


I see today in the fin review rental vacancies in the Perth metro area have doubled in less than 6 months. Yes we are mining dominated, but for how long? Anecdotally i hear about contractors being laid off on sites very freqently and geo's taking large pay cuts. Miners are only keeping the very skilled essential contractors atm. Also metropolitan electricians also taking pay cuts. Mining service companies are struggling more and more, not to mention internally they are operated like dogsh*t.