Clamps on lending to foreign investors could result in higher apartment prices, according to real estate investor Qualitas.
The warning from the Schwartz family-backed private equity firm comes after several major banks have cut lending to foreigner residential buyers amid a broader regulator-driven squeeze on investor loans.
Andrew Schwartz, Qualitas’s group managing director, said increasing constraints on foreign buyers could impact supply over the medium term, leading to price increases.
“It’s possible that prices for new apartments will rise in the medium term, due to the lack of new starts to meet demand in 2020 and beyond,” he said.
“Most of the cranes in the sky right now are the result of last cycle projects. Once they are finished, and if positive migration continues, investment in supply will be required.
“…Melbourne is recording migration of 90,000 per annum compared to 30,000 per annum in the early 1990s.”
As the bust worsens, population growth will fall and the glut get worse not better.
