When Sydney’s housing market slowed dramatically, the ripple effect was felt far beyond real‑estate agents. Joanne Cauchi, a well‑known property stylist, went from a bustling schedule of daily installations to handling just three jobs a week and has stopped buying inventory altogether.

Broad impact on the property‑adjacent economy

Higher interest rates and the centre‑left government’s rollback of key property‑tax concessions have reduced demand, causing a sharp decline in home sales. While average home prices are down less than 4% from their March peak, the number of transactions has fallen sharply.

Reuters analysis estimates a 15% drop in housing turnover since June, removing between A$355 million and A$710 million each month from the economy that supports furniture retailers, landscapers, removalists, conveyancers and painters. Even allowing for normal market swings, turnover remains 10.5% below its five‑year average, translating to an annual loss of A$2.8 billion to A$5.6 billion for businesses that rely on homes changing hands.

Businesses feel the squeeze

Home‑wares chain Harvey Norman reported a 15% fall in franchise profit for its June half, reversing a 14% gain in the prior period, citing reduced appetite for home‑related purchases and renovations.

At The Moving Box Company, four workers have left since April after hours were cut, and headcount fell from 13 to nine. General manager James Wotherspoon said sales were down 19% year‑on‑year since June.

Conveyancers and selling agents also face higher compliance costs after new anti‑money‑laundering rules were introduced in July, just as revenue declines. David Winning, founder of Your Move Conveyancing, noted that smaller operators are discussing mergers or retirement, and the Real Estate Institute of Victoria reported that 350 of its 6,600 members plan to cancel their membership.

Industry outlook

University of Sydney senior lecturer James Graham said the methodology was reasonable but noted it omitted the “wealth effect,” where falling home values dampen consumer confidence. He warned that all real‑estate‑related sectors will see reduced income.

Despite the challenges, the housing market still represents a A$600 billion‑plus annual turnover for Australia, underscoring the importance of policy stability for families and businesses that depend on property transactions.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.