Australia Housing Boom Shows Signs of Cracking

Bloomberg's Paul Allen reports from Sydney on Australia's rare property downturn, driven by removal of investor tax breaks and RBA rate rises. Sydney is leading price declines, with weak auctions and lowered price guides. The housing slide is weighing on consumer confidence and corporate outlooks, raising concerns of broader economic fallout. - Australian property is in a rare buyer's market/downturn. - A Paddington terrace price guide was cut from $3.5 million to $3.2 million. - The government ended generous tax breaks for property investors in the May budget. - The RBA lifted rates three times in a row, reducing borrowing capacity. - House price data show prices slipping in almost every state capital, led by Sydney down 4%. - Weak auctions include a Melbourne property drawing zero bids. - Falling house prices are hitting consumer confidence and company outlooks around the consumer. - The report raises concerns about wider economic consequences.