‘Huge uncertainty’ plaguing the property market

By |
Westpac’s chief economist, Bill Evans, has warned that “huge uncertainty prevails in this market” after the recent rise in building approvals, hence continuing Australia’s high rise construction boom.

“The number of high rise apartments currently under construction in March this year has surged to 111,000 – including 44,000 in New South Wales; 34,000 in Victoria; and 23,000 in Queensland,” said Evans in a statement.

But there is an underlying cause to the construction boom, as Chinese buyers’ heavy involvement in the market has also propelled the building boom in recent years, together with the increase in the number of housing investors.

A recent ANZ survey revealed that foreign investors accounted for 23.9% of all property sales in Australia during the June quarter and most of these foreign investors were Chinese. This creates a heightened risk should Chinese investor buying start to dry up.

“At some point, the Chinese authorities, who appear to have stabilised last year’s spectacular near USD 1 trillion loss in foreign reserves, may decide to slow this leakage,” said Evans.

“Certainly we have seen marked evidence of a tightening of capital controls, particularly for the non-corporate sector. That tightening of capital controls might also impact the construction boom.”

Another thing that adds to the uncertainty is the fact that banks have stopped funding FIRB buyers, which might “discourage foreign buyers, with the result of sharply slowing the apartment construction cycle.”

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : willoughby east , upper kedron , west wodonga , north lambton , cardiff south

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here