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For most of Australia there never was a bubble
The bubble in Melbourne is rapidly deflating due to over-supply of units while Sydney is not as exposed the stalled growth of income means affordability is in crises. As a result offshore investors need to be relied to maintain the heat in the market – is that sustainable.
Meanwhile in Perth when allowing for inflation house prices are lower now than they were 10 years ago and most of the other capitals are not much better. Of course many mining dependent towns are in serious decline with values crashing.
Investor clamp down could be serious for some
The two tiered growth evident across Australia’s property markets continues with Sydney and Melbourne still on turbo boost. However there is some indication that auction clearances are easing off. The recent clamp down on investment lending by APRA could cause further easing however it could have a damaging impact on regions that have not enjoyed the recent boom.
Another area of concern is the off-the-plan market where approximately 90,000 units are under construction. A significant number of buyers would have been aiming at a 90% LVR and may now find themselves seriously struggling to find that kind of lending in the current market. We do have a few options available but suggest you get your finance sorted sooner rather than later.