Invest
Sydney risks housing bubble, warns UBS
In a new report, UBS has warned investors to beware the bubble risk in Sydney’s property market, saying it “could trigger a major price correction at any time”.
Sydney risks housing bubble, warns UBS
In a new report, UBS has warned investors to beware the bubble risk in Sydney’s property market, saying it “could trigger a major price correction at any time”.
The UBS Global Real Estate Bubble Index ranked Sydney as the fourth most at risk city of a housing bubble behind Vancouver, London and Stockholm.
UBS chief investment officers and authors of the report, Claudio Saputelli, Matthias Holzhey, and Maciej Skoczek say the common feature shared by potential bubble cities was interest rates.
“What these cities have in common are excessively low interest rates, which are not consistent with the robust performance of the real economy,” they said.
“When combined with rigid supply, as well as sustained demand from China, this has produced an ideal setting for excesses in house prices.”
According to the report, house prices in ‘near bubble’ prices have increased by nearly 50 per cent on average since 2011, compared to less than 15 per cent in other cities.
Sydney was rated 1.7 on the risk index, above the bubble benchmark of 1.5, but well below Vancouver’s 2.14.
While Sydney may have all the market factors for a bubble, it remains unclear when or how a potential correction could play out, with the report concluding that investors should be wary of sudden corrections.
“The situation is nevertheless fragile. A sharp increase in supply, higher interest rates or shifts in the international flow of capital could trigger a major price correction at any time.”
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
