Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Sydney price growth could suffer from rule change

Sydney price growth could suffer from rule change

Sydney could be just one piece of new regulation away from experiencing a significant drop in property price growth.

Propertyology buyer’s agent Simon Pressley told sister publication Real Estate Business that the Sydney market is a “house of cards” that could be affected by regulatory intervention.

Mr Pressley said that while he was not predicting a crash, Sydney “doesn’t have very good, strong fundamentals” and is currently riding a wave of unsustainable growth.

Advertisement
Advertisement

“Our ‘house of cards’ concern is saying that a couple of triggers could be pulled that would really pull the rug out of the Sydney market,” he said.

One of those triggers could be new lending rules that would make it harder for investors to access credit, Mr Pressley said.

The federal government’s proposed crackdown on foreign buyers could also trigger a slowdown

“That’s not saying that we expect Sydney to bust or for the floor to fall out the back of it,” he said.

“It’s understanding what drives Sydney, and when the momentum started about two years ago it was primarily an influx of Asian investors that started that momentum.”

Sydney’s median house price reached $782,000 at the end of March after recording 14.9 per cent annual growth, according to CoreLogic RP Data. The median unit price rose 9.7 per cent to $600,000.

Mr Pressley said a Sydney downturn would have a flow-on effect on consumer sentiment and business confidence in the rest of the country.

However, he said the impact would be limited because each capital city and town has its own distinct property market and economies.

Sydney price growth could suffer from rule change
mortgagebusiness

 

Latest News

Three more lenders have announced cuts to their interest rate floors for home loan serviceability assessments in response to APRA’s new gu...

Mortgage-holders are wasting approximately $4.2 billion annually in “unnecessary” interest costs, according to new research. ...

Property price declines have wiped approximately $5.5 billion in revenue from state government budgets, according to a new analysis from Moo...

FROM THE WEB
podcast

LATEST PODCAST: New banks and bank CEOs

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.