Quantcast
Menu

News

Fears over Australian housing boom

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
05/08/2015

The property boom in Australia is expected to peak in the next 12 months, analysts in the country have suggested.

Many in the country had hoped property investment would continue to rise following a period of growth, but this demand is now expected to wane in the next year.

Australia remains a popular country for Brits buying abroad, attracted by the shared language, good weather and cultural similarities.

But the number of new mortgages fell to an almost two-year low in May and investment firm Nomura now believes that demand is peaking.

“It looks like we’ve got a bit less support for the economy over the year ahead coming from housing,” said Nomura strategist Andrew Ticehurst.

Mortgage approvals dropped 6.1% in May, a much worse result than economists were expecting. Another analyst, Brian Johnson, of the broker firm CLSA, said he expected house prices to fall in many popular areas.

“Every channel check we do highlights Perth and Western Australia as particularly vulnerable given already weakening property prices, slowing population growth, a slower WA economy, elevated housing starts and falling rents,” he said.


Share: