An inner Sydney real estate agent says her property listings have slumped 20% from a September peak... APRA changes could prevent apartment market collapse...
Sydney housing stalls as election jitters sideline sellers
(Bloomberg) -- Brigitte Blackman, a real estate agent in inner Sydney, says her property listings have slumped 20 percent from a September peak, and the phones at her Potts Point office are no longer ringing off the hook.
As Australia barrels toward elections on July 2, political uncertainty is weighing on the nation’s A$6.4 trillion ($4.7 trillion) housing market. With tax proposals from the government and opposition muddying the outlook for house prices, sellers are choosing to sit on the sidelines.
“We are feeling the lack of supply as vendors balk at the uncertainties,” said Blackman, an 18-year industry veteran. “A lot of variables are in play, starting with the election.”
Blackman’s experience is typical as the property market takes center stage in the campaign. New listings in Sydney dropped 3.6 percent in the four weeks to May 15 from a year earlier, according to data from CoreLogic Inc. Even the lowest central bank rates on record are failing to translate into investor confidence, with the median dwelling price in the nation’s largest city falling 3 percent from a November peak of A$805,000.
APRA changes could prevent apartment market collapse
Financial difficulties faced by developers could be the saving grace for Australian apartment market.
As apartment oversupply concerns intensify following predictions of record settlement numbers in the near future, the head of an off the plan property marketing firm believes the issue may be overstated as work is unlikely to start on a large number of projects.
Mark Mendel, chief executive officer of iBuyNew, said many developers are facing the same financial issues many property investors are facing and will likely be unable to see projects through.
“While there is a lot discussion about banks toughening their lending policies for buyers, they are even tougher on developers,” Mendel said.
“Developers with no track record are getting a blanket ‘no’ from lenders across the board while those with a limited track record are also finding it extremely tough,” he said.
Earlier this week, CoreLogic RP Data released figures predicting more than 200,000 new apartments will be built in Australia over the next two years and said there is “big disconnect” between supply and demand in the sector currently.
(Bloomberg) -- Brigitte Blackman, a real estate agent in inner Sydney, says her property listings have slumped 20 percent from a September peak, and the phones at her Potts Point office are no longer ringing off the hook.
As Australia barrels toward elections on July 2, political uncertainty is weighing on the nation’s A$6.4 trillion ($4.7 trillion) housing market. With tax proposals from the government and opposition muddying the outlook for house prices, sellers are choosing to sit on the sidelines.
“We are feeling the lack of supply as vendors balk at the uncertainties,” said Blackman, an 18-year industry veteran. “A lot of variables are in play, starting with the election.”
Blackman’s experience is typical as the property market takes center stage in the campaign. New listings in Sydney dropped 3.6 percent in the four weeks to May 15 from a year earlier, according to data from CoreLogic Inc. Even the lowest central bank rates on record are failing to translate into investor confidence, with the median dwelling price in the nation’s largest city falling 3 percent from a November peak of A$805,000.
APRA changes could prevent apartment market collapse
Financial difficulties faced by developers could be the saving grace for Australian apartment market.
As apartment oversupply concerns intensify following predictions of record settlement numbers in the near future, the head of an off the plan property marketing firm believes the issue may be overstated as work is unlikely to start on a large number of projects.
Mark Mendel, chief executive officer of iBuyNew, said many developers are facing the same financial issues many property investors are facing and will likely be unable to see projects through.
“While there is a lot discussion about banks toughening their lending policies for buyers, they are even tougher on developers,” Mendel said.
“Developers with no track record are getting a blanket ‘no’ from lenders across the board while those with a limited track record are also finding it extremely tough,” he said.
Earlier this week, CoreLogic RP Data released figures predicting more than 200,000 new apartments will be built in Australia over the next two years and said there is “big disconnect” between supply and demand in the sector currently.
