Australian realtor McGrath issues profit warning as new rules curb Chinese interest

Sydney

AUSTRALIA'S only listed realtor, McGrath, issued a profit warning on Monday that sent its shares plunging, as higher taxes and other restrictions resulted in a sharp pullback in Chinese buying interest for new apartments.

The warning, McGrath's second since January, is the clearest indication yet of impending pain for developers, who have been building tens of thousands of new units to cater to foreign buyers and also underscores central bank fears of an apartment glut.