A report from the Herald Sun in Australia. "Melbourne’s long-suffering homebuyers are cashing in as three-quarters of homes sell for less than their initial listing price. The figures revealed in CoreLogic’s latest Property Pulse reflect an average 6 per cent discount, equating to more than $45,000 on a $745,000 median priced house in the city. It’s been 12 years since so many homesellers were willing to cut back their expectations."

"In April last year barely a third of sellers would reduce their price to get a sale. Buyers advocate Cate Bakos said many sellers were now negotiating with buyers — and Christmas would serve as an 'emotional deadline' to convince more to do so. 'Even good properties are discounting, though obviously not all of them,' Ms Bakos said. 'We are in the thick of a buyer’s market.'"

"With close to a thousand homes expected to go under the hammer each weekend for the rest of the year, Ms Bakos advised that a below-reserve bid at auction would give buyers a chance to drive a hard bargain immediately after auction without worrying about competition."

The Augusta Review. "Activity levels in Australia’s construction industry continue to improve on the back of strength in engineering work. However, activity levels in all other sectors are deteriorating, especially in apartment construction."

"'Apartment building activity contracted for a sixth consecutive month in August, and at a sharper rate,' the Ai Group said. 'Apartment builders indicated that activity was being driven lower in response to project completions, reduced inquiries and falling investor demand.'"

"Diwa Hopkins, Economist at Australia’s Housing Industry Association (HIA), agrees the outlook for residential building is unlikely to improve anytime soon. She said pressures with 'access to finance are unlikely to ease in the near term — only yesterday did other major lenders hike their mortgage rates, with more independent moves likely to follow,' she said."

"'Add to these factors a situation of falling house prices in the key Sydney and Melbourne markets, and the list of deterrents to investor activity is quite varied. We expect credit conditions to continue to weigh on new home building activity into 2019.'"

The Australian Financial Review. "Real estate agency H&T Realty is suing developer Metro Property Development over $4 million in off-the-plan apartment sales commissions. H&T, which sells apartments in Sydney, Melbourne and Brisbane, alleges Metro withheld commissions after blaming the agent for a 20 per cent to 25 per cent default rate at seven of its Brisbane projects."

"H&T had the bulk of the sales at the seven towers. Troubled Chinese-based group Ausin was also used, it is understood. The case highlights the rising casualties of the housing downturn triggered by tightening bank lending, the fallout from the banking royal commission and an oversupply of apartments aimed at local and foreign investors, particularly in the Brisbane and Melbourne CBDs."

"It is understood the contracts between Metro and H&T are "industry standard,' which means some commission is paid upfront when deposits are taken, with the rest to be paid on settlement."

"H&T claimed this approach was unfair as many of the defaults were not 'business as usual' fallovers that tend to occur in any off-the-plan sales, but caused by a blanket refusal by banks to issue loans, forcing both foreign and local buyers to walk away."

"Loans were also rejected because of falling apartment valuations of up to 25 per cent, H&T said. A recent valuation of a two-bedroom 60-square-metres unit at the Brisbane Casino Towers came to $460,000, a 20 per cent decline in value on its sale price of $576,000."

"'You can't say it's the agent's fault for not assessing the buyer's ability to settle. We don't control bank policies or the decline in valuation, so it is unfair that we are not paid until all settlements have been made,' H&T Brisbane's Alvin Tan said. 'We do our best to check the buyer's financial situation but we can only do what we can based on the conditions at the time of sale.'"

"The Financial Review previously reported Metro had asked many agents across Sydney, Melbourne and Brisbane to sell 'residual units' at these projects offering larger discounts and commissions."

"Veterans of the Smashed Avocado War of 2017 will probably have some sympathy for the undercurrent of bewilderment emanating from the Reserve Bank of Australia about the panic around house price falls."

"It was only in May 2017 that demographer Bernard Salt set off a national debate by claiming that Millennials could afford to buy homes if only they would cut back on spending on indulgences such as smashed avocado breakfasts."

"Fast forward 18 months, and Australia is in the grip of fears of a property price crunch, caused at least in part by the banks tightening the supply of mortgage credit in response to changes forced by the prudential regulator, and concerns about responsible lending sparked by the royal commission."

"'We've seamlessly moved from a housing affordability crisis to now it's just too affordable,' RBA deputy governor Guy Debelle noted dryly on the sidelines of a FINSIA event in Melbourne on Thursday."