‘Six weeks’ to stop a collapse

A fresh round of data has painted an even grimmer picture of the outlook for Australia’s apartment market.AUSTRALIA has roughly “six weeks” to prevent a housing market collapse caused by the banks’ crackdown on foreign investor lending, a US defence think tank has warned.In an article titled “Australia Risks Strategic Setback From a Significant Foreign Direct Investment Drop Due to Changes in Bank Policies”, the Washington-based International Strategic Studies Association warns that Australia “may be entering a significant phase of its economic-strategic development”.It argues “changes in local banking policies” could see foreign direct investment in the property sector “decline markedly”. “This will profoundly impact the Australian government’s ability to fund major programs in the defence and civil sectors,” it said.The article is contained in the ISSA’s latest Global Information System newsletter, described as a “strategic intelligence service for use only by governments”.