Possibly one factor in the share price fall of late could be chances of a serious downturn in the residential building sector due to oversupply. Roger Montgomery has warned that a record stock of new houses has been building up which is worse than what the US experienced right before the GFC ("Roger Montgomery sees apartment oversupply sending property prices south" in the SMH yesterday).
If correct, it could mean some big time grief for home builders. Could also be compounded if the Chinese economy tanks or they have a further stockmarket/financial sector crash (bank bad debt is at insane levels), which will send chinese investors in Oz real estate into hiding.
SIO Price at posting:
17.5¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)