- Predictions of a housing market bubble have run rampant this year. Fingers have been pointed in all directions, including the role of loose monetary policy, negative gearing and even the Chinese. In apparent defiance of the macro concerns raised by regulators, house prices continued to rise over August, up 11.2% for the year. But not all indicators remain positive and the end may be nigh. This may prove problematic, particularly if negative gearing leads to substantial negative equity.
Here we go again
- Combined capital city dwelling values are up 11.2% over the year. On one extreme, Sydney peaked the scales at 16.2%, while Canberra posted a meagre 1.4%. Thanks go to the PM for the latter, and scarcity the former.
This update does not constitute financial advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek professional advice before acting or relying on any of the content.