Queensland’s credit rating just moved for the first time since 2009. S&P pointed at weaker property activity after the federal CGT and negative gearing announcements. Fewer transactions means less stamp duty. Stamp duty is how the state funds hospitals, roads and schools. One percent less volume is already estimated at around $85 million in a quarter. Brisbane dwelling prices fell 2.6 percent in September. Borrowing capacity fell with them. Cheaper stickers do not help if the bank will not lend the old amount. Victoria’s downgrade was a debt story. Queensland’s is a revenue story. Same outcome, different mechanism. Investors leaving a market does not stay a housing problem for long.
Chris Tipper | 📈 ₿ 🥇🥈Share
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