Australia real estate collapses: prices in Sydney and Melbourne dropped 20%
An incident that can not be ignored - says Shane Olivier of AMP Capital, facing the serious problem of the drastic fall in prices in the Australian real estate market. A melt-in-pot of factors including poor access to the market itself, credit reduction, heavier mortgages, and dramatic reduction of investors.
This lethal mix has done a big damage to the entire Australian real estate market, so much to be suspicious and to demoralize all potential investors, eager to buy a property in Sydney.
One of the main cities of the continent, has recorded some appalling drops, provoked besides from the excessive increase of the offer.
Together with Sydney, another real estate market collapsed in parallel, if not even more important: that of Melbourne.
The collapse seemed to have peaked a year ago. But in reality the annual decline has exceeded the minimum trend (and already at the time of concern) of 5%.
It is hoped that also other very important cities such as Canberra, the capital, Hobart, Adelaide and Brisbane.
Even banks are reluctant, and may start to get too tight for investors who decide to apply for a loan by virtue of a real estate investment.
Unfortunately, the future forecasts for this nation and especially for the two cities mentioned above are not positive at all.
It announces a further collapse of up to 40%, which will bring about a momentous change in the history of the Australian real estate market.
Among other factors that have increased this collapse, we undoubtedly also identify the attitude of the potential investor.
Most of the '' moderation '' came through the strong controls and prudential measures taken by the individual in anticipation of an investment in Australian brick.
With more choice and less urgency, they therefore have fewer buyers on the market and, those already present, prefer to stop at a first and small investment.
In the last year only 44% of homes were sold, with a decrease of over 95% in the last 14 years.
It is hoped that this collapse can be reduced over the years that follow, but it is very difficult for the market to recover.
This lethal mix has done a big damage to the entire Australian real estate market, so much to be suspicious and to demoralize all potential investors, eager to buy a property in Sydney.
One of the main cities of the continent, has recorded some appalling drops, provoked besides from the excessive increase of the offer.
Together with Sydney, another real estate market collapsed in parallel, if not even more important: that of Melbourne.
The collapse seemed to have peaked a year ago. But in reality the annual decline has exceeded the minimum trend (and already at the time of concern) of 5%.
It is hoped that also other very important cities such as Canberra, the capital, Hobart, Adelaide and Brisbane.
Even banks are reluctant, and may start to get too tight for investors who decide to apply for a loan by virtue of a real estate investment.
Unfortunately, the future forecasts for this nation and especially for the two cities mentioned above are not positive at all.
It announces a further collapse of up to 40%, which will bring about a momentous change in the history of the Australian real estate market.
Among other factors that have increased this collapse, we undoubtedly also identify the attitude of the potential investor.
Most of the '' moderation '' came through the strong controls and prudential measures taken by the individual in anticipation of an investment in Australian brick.
With more choice and less urgency, they therefore have fewer buyers on the market and, those already present, prefer to stop at a first and small investment.
In the last year only 44% of homes were sold, with a decrease of over 95% in the last 14 years.
It is hoped that this collapse can be reduced over the years that follow, but it is very difficult for the market to recover.
