Robert Gottliebsen (“Gotti”) has penned an article this morning claiming that Sydney and Melbourne house prices have come “off-the-boil”:
It is clear that lower migration has helped take the Sydney and Melbourne housing markets off the boil. That easing has been helped by attacks on Asian buying of existing dwellings, warnings about a housing bubble and speculation that negative gearing might be curbed. Reserve Bank governor Glenn Stevens this week gave that speculation a nudge by advocating curbs to negative gearing.
I doubt the Abbott government will act on negative gearing. They are moving into election mode but the speculation still dampens the housing market.
The end result is that in terms of the effect on Sydney and Melbourne dwelling prices, a rate cut is less dangerous now that it has been for the last year or two…
“Off-the-boil”. Really? Because, the latest statistics from Core Logic-RP Data shows that Sydney and Melbourne dwelling price growth is accelerating, up 17.2% and 10.3% respectively over the year:
Moreover, both capitals are still experiencing rampant population growth (immigration), which remains near all-time highs (although it will come off the boil in due course):
Never let the facts get in the way of a good yarn, hey Gotti?
