Alarm bells ring for off-the-plan apartment buyers

Advertisement

By Leith van Onselen

Duncan Hughes at The AFR has offered another warning on how the investor-led housing boom is on borrowed time following the effective speed limit placed on investor mortgage growth by APRA, APRA’s higher capital requirements on the banks’ mortgage books, and the tougher lending policies already implemented by the banks:

Real estate agents and developers are warning that many investors with off-the-plan apartments coming up to completion could face shortfalls of more than 20 per cent in both rental income and valuations.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.