As the property recession deepens into the economy

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As the property recession deepens into the economy, the current Australian property industry will slowly enter the recovery phase, but there will be no rapid rebound. The recession continues to have a negative impact on inflation and consumer spending. Although the loose loan standard and the interest rate cut policy helped the economy, the employment boom of many years has gradually disappeared with the decrease in wages and the decline in consumption caused by falling house prices. (Hendershott, 2000). This means that revenue growth will slow further and will also lead to a forced sale of the property market. The survey of the financial industry also shows that lenders are increasingly demanding mortgage borrowers, especially for higher-risk investment loans like property. The plight of the Australian property industry is largely due to the fact that national banks are vulnerable to housing and generate a self-credit crisis.
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Supporting Evidence Even the global financial crisis has hardly slowed the lending boom, as the federal government’s bank guarantees kept credit flows, and its first home buyer boost plan spurred demand (Hajdu, 1994). Take the Commonwealth Bank of Australia as an example. According to the data, the bank's new mortgage market share increased by 6.7% in the first half of 2017. For the six months ended December 31, 2016, CBA's home loan growth was 1 percentage point higher than expected. This outstanding performance boosted the bank's full-year earnings by 0.5%, from A$9.5 billion in the same period last year to A$9.9 billion (Michael , 2019). In the process, mortgage standards have been eroded. So far, most banks have used low-cost estimates to increase the amount of loans, and there is evidence of widespread fraud and deception in terms of borrower income and other debt. Therefore, even if the demand does rise in the case of lower interest rates, lenders are not willing to increase the loan. Housing credit is still growing, but it is the slowest monthly growth rate since 1984 and the weakest annual growth rate since 2013, and is still decelerating (Reddy, Higgins & Wakefield, 2014). That is to say, if the bank now offers buyers a loan that is 20% less than before, this means that these buyers will spend much less on purchases than before. There may be some buyers who have the opportunity to get savings or the existing home equity, but it won't be affected too much, but it is clear that house prices will fall sharply. The current downturn in the property market is mainly caused by the implementation of stricter lending standards. As these loan standards are in place, it is unlikely to be further tightened, and house prices should be close to the bottom. Foreign investors have also withdrawn from the market, in part because of stricter investment rules and increased national taxes on overseas buyers (Hatzvi& Otto, 2008). At the same time, housing supply has soared, especially in Sydney, Melbourne and Brisbane Freestone & Randolph, 2010). In 2019, as the central bank
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announced interest rate cuts, banking regulators relaxed lending standards, threats that
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