Peak of Australia housing boom has passed: Morgan Stanley

Sydney

AUSTRALIA'S housing boom has passed its peak, with a looming apartment glut set to lead to a sharp slowdown in future developments, according to Morgan Stanley.

The slowdown in construction will hurt economic growth, put 200,000 jobs at risk and prompt the central bank to resume cutting interest rates next year, Morgan Stanley analysts led by Daniel Blake said in a note dated Oct 19.

"We believe the growth contribution from the housing boom has already peaked and look for a plateau over 2017 and decline through 2018," the analysts said. T…