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.
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. Increasingly concerned with the rapidly expanding property market, authorities introduced additional capital requirements for banks earlier this year, designed to force them to protect themselves from a potential housing market downturn; the banks most affected included Commonwealth Bank, Westpac, NAB, and ANZ. Macquarie Group forecasts a 7.5% fall in house prices over the next two years.