It was in July 2017 when the property prices in Sydney were at peak. This fall in the Sydney property prices was due to the global financial crisis. The value of the national dwellings went down by 0.7%. This fall in the price of the Sydney property was reported in November and that the fall in the Sydney was 1.4% and Melbourne by 1%.
So far, statistics says that Sydney has experienced a biggest market fall on a monthly basis. It is assumed that the fall in the Sydney property is considered to be the biggest fall as of now.
Within one year, there is also a fall in the national property by 4.1%. Sydney reported a fall in the property prices by 8.1%. On the other hand, Melbourne reported a fall in the property price by 4.2%. As a result of this, the banking sector also had to suffer. As per the record based on the last month. It was reported that there was a slow growth in the investor home loans. Based on the data from the Reserve bank of Australia, there was also decline in the credit growth of owner-occupier.
As per the statistics and graphs provided by the Reserve bank of Australia, a tremendous fall is seen in the housing prices as well as the investor credit. These changes in the housing prices and the investor credit has also influence the demand and supply of the housing as well as the housing loan.
The credit supply also got impacted. The banks have laid stress on lending the credit based on the lending standards. Now, if the banks feel that the borrower’s credit rating is not up to their mark, no credit will be provided to them.
Further, bank has also increased the interest rate of its new as well as the existing borrowers. In other words, the banks have now tightened when it come to the supply of credit.
There are multiple reasons which affected the investor demand towards housing market development. In the regions of Brisbane, Melbourne and Sydney, there was an increase in the supply of the housing construction. Now, there was a fall in the supply of the credit followed by the weaker demand from the foreign buyers to be strict towards the Chinese capital control and various policies in Australia increased the property price of these foreign residence. Also, there were substantial increase in the housing prices which resulted in the ongoing adjustments in the housing prices.
At present, as a result of slow growth in the housing prices have resulted in major markets in Australia. The statistical data from the Reserve Bank of Australia, highlights that there is a variable increase in the investors whose outstanding loans are more.
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