From the AFR:
By the mid-1980s, Sydney developer and builder Lyn Shaddock already had a well-deserved reputation for picking the property cycles…So what about the current housing boom?
…it (the looming oversupply of apartments) looks scary to me.” With so many apartments to be completed in so short a time, rents will weaken and values follow. Shaddock says that the weakness will affect confidence “right across the market.”
…”A lot of the investment is from outside Australia by people who have not experienced the fall in value of previous cycles,” he writes.
“Foreign capital will only stay while it can forsee profit. The moment that perception changes, panic sets in and the capital goes to to where it believes profit can be made…..The rush for the exit usually means bargains.”
Hats off to Mr Shaddock who casts a baleful glow around his spruik-addicted contemporaries.
