Review of the Global AC Market in the First Half of 2023 Part II — Continued from the August Issue

The air conditioner market in Australia, which is currently in winter, was not blessed with a very favorable environment in the first half of 2023.

There were no long-term extreme heat waves that drove up cooling demand during the summer. In addition, high interest rates and high inflation have weakened consumer appetite.

Due to the high inflation and high interest rates, it has become hard to get a mortgage, and there are fewer buyers and construction starts for detached houses in particular. However, there is a view that high interest rates and inflation may have passed their peak. Furthermore, after the end of the pandemic, workers and international students are rapidly entering the country, and the number of immigrants is increasing. According to the Australian Bureau of Statistics (ABS), immigration is expected to increase by 650,000 over the two years from July 2022 to June 2024, boosting the overall population by 900,000. In response to this rapidly increasing population, housing construction centering on rental housing such as apartments may pick up in the future.