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The high debt levels are believed to suppress economic activity, as businesses grapple with rising energy prices, wages, and insurance costs—factors that are collectively choking growth and sustainability.
Impact on Business and Real Estate
The economic decline extends beyond the balance sheet. The real estate market, a traditional indicator of prosperity, is showing signs of distress. Melbourne’s property prices are plunging, with areas like Adelaide overtaking Melbourne in median house prices. This shift signals declining confidence among homebuyers and investors in Victoria's economic stability.