Australia's housing downturn is dividing companies during this earnings season, as high interest rates and tax reforms create clear winners and losers. Analysts expect muted earnings growth on the S&P/ASX 200 Index, with limited upside remaining. The domestic economy has been particularly tough on companies tied to household spending, as high borrowing costs and inflation concerns weigh on consumers.

Residential property developers Stockland and Mirvac Group reported higher profits, benefiting from tax changes that exempt new builds from reduced capital-gains discounts. Their results were "materially stronger than the market anticipated," according to Citigroup analysts led by Howard Penny. Share prices surged amid rotation from retail REITs.

Retailers linked to new home-buying demand faced pressure. JB Hi-Fi Ltd. and Breville Group Ltd. saw steep share selloffs after disappointing earnings and sales. Canaccord Genuity strategists led by Greg Burke noted the softer macro backdrop is increasingly weighing on discretionary spending.

Australia's Big Four banks reported declines in mortgage applications. Morgan Stanley analysts led by Richard Wiles see downside risk to FY27 earnings from a slowing mortgage market. Commonwealth Bank of Australia reported full-year results in August, while Westpac, ANZ, and NAB report in November.