The Business does the coming property correction
In the wake of Standard & Poors' downgrading of 23 smaller banks because of an "increased risk of a sharp correction in property prices",
ABC's The Business examines the potential fallout featuring LF Economics Philip Soos describing the Bubble.
https://www.youtube.com/watch?v=Ml5LYlFcy6Y
May 25, 2017
https://www.macrobusiness.com.au/2017/05/business-coming-property-correction/
By Leith van Onselen
In the wake of Standard & Poors (S&P) downgrading of 23 smaller banks because of an “increased risk of a sharp correction in property prices”, ABC’s The Business ran an interesting segment last night examining the potential fallout.
The most interesting guest was Chinese real estate agent, Ming Li, who specialises in selling Melbourne properties to Chinese investors.
Li claims that Chinese buyers are losing interest in Melbourne apartments due to the pending oversupply and the lack of capital growth. Li also claims that 80% of Chinese off-the-plan buyers may not be able to settle their Melbourne apartments due to, among other things, capital restrictions in China and the unwillingness of Australian banks to lend.
The segment also features LF Economics’ Phil Soos describing the bubble, as well as BIS Oxford Economics’ Angie Zigomanis, who acknowledges the oversupply but claims that the broader Melbourne and Sydney markets’ prices are based-up by ‘fundamentals’.
Worth a watch.