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Investors in Australian housing market have fallen sharply, while Chinese buyers have fallen by 60% a year.

 
[Economic News]     11 Jul 2019
Australian housing investors pulled out of the market, dragging down house prices, the biggest decline since the global financial crisis. (Australian News Network Photo)
Investors in Australian housing market have fallen sharply, while Chinese buyers have fallen by 60% a year.

Australian housing investors pulled out of the market, dragging down house prices, the biggest decline since the global financial crisis. (Australian News Network Photo)


In the wake of the global financial crisis, Australia`s housing market is a drag on housing prices, according to the Australian News Network.

The impact of Australia`s tightening of overseas investors` lending policies has been reported to have a sharp drop in the number of investors in Australia, making it the most significant since the global financial crisis.

The Australian Bureau of Statistics (ABS) has shown a 45.4 per cent reduction in the credit line for Australian investors in April this year, as compared to April 2015. Four years ago, investors had a total of $12.5 billion, and now down to $6.8 billion.

Conitzbi (Nerida Conisbee), chief economic manager at Realestate, real estate, said investor lending would not return to its original level soon. Buyers from Asia fell sharply, with real estate buyers from China falling more than 60 per cent in the past 12 months alone, the lowest level on record for the site. Buyers` confidence in the new apartment has also declined after some of the concerns about the structure of the house.

Kush (Cameron Kusher), head of research at CoreLogic, a housing market research firm, said investors` abandonment of the housing market could be attributed to changes in market policy and oversupply of homes. In addition to higher interest-only loan rates, investors face premium issues, all of which are discouraging factors.

Kush pointed out that there are 1 / 3 investors in the housing market, and a large number of investors withdraw from the market, which usually leads to a decline in house prices. Now, homeowners are also declining buyers, these are the main factors affecting the decline in house prices.

In the second quarter of this year, Brisbane was the only state capital city with a median rise in house prices, rising 0.1 percent to A $490000, according to the latest Realestate figures. The upward trend in house prices in the city is also affecting remote areas. Over the past 12 months, McKay (Mackay) has seen house prices rise faster than in other parts of Australia. House prices are also rising in many small mining towns.

Prices in Sydney and Melbourne both fell 0.4 percent in the same quarter, with median prices of A $805000 and A $650000, respectively. Adelaide, Hobart and Perth all fell 0.7 percent to a median of A $440000, A $430000 and A $460000, respectively. Darwin fell the most, at 1.6 percent, with a median price of A $430000, while Canberra fell the smallest at 0.3 percent, with a median price of A $592500.

In addition, 5 of the top 10 urban areas in Australia`s housing market are located in Xinzhou. According to Realestate data, the Alambi Highland (Allambie Heights) housing market is the most active. The other four urban areas are located in South Australia, and the remaining one is (Middle Park)., central Park, Victoria.

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