Australia’s big four banks facing a looming time bomb

Australia’s big four banks facing a looming time bomb

More than 230,000 brand new apartments are expected to settle within the next 24 months, thanks to record-high levels of construction, but they represent a significant risk for Australia’s big four banks.

More than 80,000 apartments and units are expected to settle in both Sydney and Melbourne, with Brisbane expected to see 44,000 units settle within the next two years, according to CoreLogic RP Data.

The problem comes when you compare the average number of unit sales annually over the past five years with a big disconnect appearing. The historic sales figures include sales of both new and existing apartments, and new stock usually accounts for a smaller slice of total sales than resales of existing stock.

Bubble, what bubble?

Bubble, what bubble?

The recent Commodity rally is not what it seems

The majority of trading happens at night

Earlier this year, the commodity market started to rally. In particular, the Chinese market saw a rapid rise in volume that make previous bubbles seem tame.

Over 2 months, daily turnover on Chinese future’s market rose by an astonishing US$183bn, which eclipses the previous booms seen in Chinese equities and even the Nasdaq boom of 2000.

Incredibly, the length of time held for these futures contracts barely lasted 3 hours for Steel and iron ore contracts.