Reports suggest the property market boom in Australia has come to an end, as the proportion of property lending made to investors has dipped, after reaching an all-time high in May. Lending to investors represented 53.5% of all property lending in May, falling to 48.5% in August; this measure stood at 35.5% in 2000, 28.6% in 1995, and 14% in 1991. Another indication that the boom may be over is the percentage of properties sold at Sydney auctions; last Saturday, only 65.1% of properties sold, down from 70% the week before, and 90% in May 2017. Before the explosion in negative gearing, one in every six new investors built a home. Macquarie Group forecasts a 7.5% fall in house prices over the next two years.
Reports suggest the property market boom in Australia has come to an end, as the proportion of property lending made to investors has dipped, after reaching an all-time high in May. Lending to investors represented 53.5% of all property lending in May, falling to 48.5% in August; this measure stood at 35.5% in 2000, 28.6% in 1995, and 14% in 1991. Another indication that the boom may be over is the percentage of properties sold at Sydney auctions; last Saturday, only 65.1% of properties sold, down from 70% the week before, and 90% in May 2017. Macquarie Group forecasts a 7.5% fall in house prices over the next two years.