By Frank ChungAustralia 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". "However, the government itself seems unaware that the anticipatory caution on the part of Australian banks may accelerate a decline in the Australian economy." The ISSA described moves by Australian banks from July this year to restrict or even withdraw funding to foreign property investors as "almost cartel-like policies". "CBA estimates of the apartment construction pipeline point to a significant lift in supply that will ultimately weigh on new construction.

Source: New Zealand Herald September 12, 2016 00:45 UTC