No housing bubble, says Aussie John

By |
Australia’s apartment sector may soon hit a bumpy period, but the wider property market is not at any real risk of a widespread housing bubble, according to one of the mortgage industry’s biggest names.

According to a report in The Australian, Aussie Home Loans founder John Symond believes the Australian property market is relatively healthy, outside of concerns around off-the-plan apartments.

“I don’t believe there’s a housing bubble risk at all. I’ve been saying that for 10 years since the GFC,” Symond told The Australian.

“I think there’s going to be a temporary concern of oversupply of apartments in certain regions only,” he said.

Symond’s concerns echo recent warnings raised by the Reserve Bank of Australia about the health of the apartment market.

While construction in the apartment sector has been strong of late, Symond said much of the concern about oversupply stems from the decision of numerous Australian lenders cut off finance to foreign buyers.

“You can talk to any developer of high-rise and they will tell you up to 50 per cent of presales are to Chinese sign-ups. The fact is that’s stopping with a thud,” Symond told The Australian.

While over-exposure to the apartment market and foreign buyers was sighted by lenders as the reason to shut their books, others also had concern about widespread mortgage fraud.

There could be some positives from the situation however, with Symond saying the drop off in foreign investors could lead to apartment projects being shelved, which will help to minimise concerns.

“There won’t be as many new developments happening and … some of those projects will take a hit on expected sales price by ambitious developments … The end result will be a more healthy housing market,” he told The Australian.
 

Do you have more than $120k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : woolloongabba , millner , narara , eagle vale , kariong

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