Australian Property Stocks Face Risks After Bathla Collapse

Australian property companies are having a difficult year.

Their shares have fallen while property companies in other developed countries have generally risen.

Interest rates have gone up three times, making borrowing more expensive.

Fewer home sales and higher building costs are also hurting developers.

Bathla Group, a private developer, recently became insolvent, showing how difficult the market has become.

Analysts do not expect the collapse to spread widely to listed developers because their businesses operate differently.

However, larger companies such as Stockland and Mirvac Group may benefit if they can build homes that Bathla can no longer complete.

Overall, analysts expect property-company earnings to remain under pressure.