(Reuters) - McGrath Ltd, Australia's biggest listed real estate agency, warned of a loss for the June quarter on Friday, saying subdued market conditions continued in the second half of its financial year.
The realtor said it generated underlying earnings before interest, tax, depreciation and amortization loss of A$4.5 million ($3.20 million) for the eight months ended Feb. 28. In February, it reported a loss for the first half of the 2019 fiscal year ending June 30.
"We are disappointed that the real estate sector is facing continued headwinds, exacerbated by the (New South Wales and Federal) elections, the tighter lending environment and weakening economic conditions affecting our sales business...", said CEO Geoff Lucas.
The significant reduction in transaction volumes in the sector continues, said Lucas, adding that he felt sellers were now more prepared to tackle the tough market conditions.
Australia's once high-flying property market has nosedived with policymakers grappling with the potential implications of the housing downturn on the economy.
Housing makes up over 20 percent of Australia's total inflation basket which includes four broad categories - rents, new dwelling purchases, utilities and maintenance and property rates.
(Reporting by Aby Jose Koilparambil in Bengaluru; editing by Darren Schuettler and Subhranshu Sahu)
