Ross Greenwood: With everything that’s been thrown up banks and property investors, theres little ones of the prices right now are under pressure.
The wonder is that it’s taken so long.
Think about it!
Interest rates have been raised, interest only loans are harder to get, banks now insist on bigger loan deposits, loans to foreign buyers have been restricted, and property valuations for loans are now much more conservative from banks.
That’s a pretty heady mixture… the results can be seen.
In May, traditionally a quieter month for property prices.
Prices in Sydney, Melbourne, Perth, Hobart, Darwin, and Canberra where either flat or going backwards – you can see it there.
So that’s house prices – but it’s even worse when you look at apartments.
Aside from Perth, every capital city saw average apartment prices lower.
Oddly, the markets are said to be most exposed to falling prices – that’s Brisbane – didn’t fare so badly.
It was one of the better performers but you can see here given their 1-month figures that some of these falls are pretty sizable.
Now, this is just one month and shorter numbers tend to bounce around a bit, but there are sure signs that prices are under more pressure.
Then, when you think about all the measures holding back investors, especially, you kind of understand why.
But government, state and federal, has to be very careful trying to control the supply and demand of the housing markets, or any market for that matter.
And you can see it again yesterday, with New South Wales giving extra stamp duty concessions to first-time buyers, increasing infrastructure spending, and trying to speed up approval processes to get more housing development.
Now, they’re all reasonable and good things but there’s also a doubling of the stamp duty surcharge that foreign investors will have to pay, and in the tripling of the land tax surcharge.
In other words, state and federal governments and making foreign investors pay up more if they want to come and buy here in Australia.
But do remember, our economy is cooling and housing is such a big part of that growth story.
Politicians have to be very careful not to kill the goose that’s being laying the golden eggs.
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