FEAR & GREED | Business News House prices surge; crackdown on 'shrinkflation'; profit season wraps up
Aug 31, 2025
House prices in Australia experience their largest increase in over a year, propelled by interest rate cuts and high demand. The spring selling season brings renewed consumer confidence, impacting auction rates and ASX earnings. Meanwhile, the government is tackling shrinkflation to enhance product transparency for consumers. Internationally, a US court rules against Trump's tariffs, affecting trade dynamics. Also, Tasmania sees a tourism surge, with unique winter experiences attracting visitors from Asia.
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Spring Selling Season Heats Up
- Australia's spring housing market has surged after three recent rate cuts, lifting monthly and annual price growth significantly.
- Tight supply, higher wages and strong auction clearance rates are putting sellers in a powerful position.
Auctions Rebound Despite Inflation Surprise
- Auction clearance rates climbed sharply over the weekend, with Sydney and Melbourne leading the rebound.
- The government's first-home buyer deposit scheme and expected rate cuts may further stimulate demand into spring.
Concentration Amplifies Earnings Volatility
- Earnings season produced outsized volatility because the ASX is concentrated in a few large companies.
- Markets reacted strongly to results from firms with US exposure while tech-related companies showed stronger growth.
