Firmus fallout goes global, the big energy lie & housing can’t find a bottom

The Australian housing market faces a significant correction, with Sydney auction clearance rates hitting record lows and the Gold Coast experiencing a sharp decline in unit prices due to speculative oversupply. The failed Firmus IPO underscores growing investor skepticism toward AI infrastructure, triggering global volatility for data center operators and chip manufacturers. Meanwhile, the energy sector confronts a looming "energy cliff" as coal-fired generation retires without adequate large-scale renewable replacements, a situation worsened by short-term gas policies that disincentivize long-term capital investment. Broader economic indicators, including rising youth unemployment and cooling business confidence, reflect the cumulative impact of recent interest rate hikes. Private credit remains a critical, albeit complex, funding source for residential development, filling the gap left by traditional banks while necessitating increased regulatory transparency to ensure market stability.