Sydney’s property market is cooling off after five hot years creating an opening for some bargain prices — though not right away.
Prices are expected to drop between 5 and 10 percent in 2018 and many are attributing the changing market to tighter lending rules introduced by the Australian Prudential Regulation Authority, according to Mansion Global.
Mortgage-lending is stricter under the new rules as is borrowing for foreign investors and Australians who live abroad using foreign sources of income to pay.
“They’ve been heavily hit with some banks not even lending a cent to them,” said Chris Gray of Your Empire to Mansion Global.
The result is less interest from buyers, which, analysts predict, will lead to some deals on luxury properties — though buyers will have to wait it out to avoid the “problem” properties.
“The agents haven’t rung us for three or four years because they’ve had 101 buyers, whereas now they are ringing, but usually with properties that have got fleas in the way or zero buyers on, or have got something wrong with them,” said Gray to Mansion Global.
In 12 or 18 months he expects “some genuine bargains” to appear. [Mansion Global] — Erin Hudson