Here’s the realty-negative piece produced prior to the RBA meeting every month by Domainfax:
Hong Kong-based hedge fund manager Apt Capital Management has shorted Australian banks because of their exposure to a property market it believes is out of step with Australia’s economic strength. It is forecasting a severe correction.
Apt Capital strategist Amy Reynolds said interest rate rises or a drying up of foreign investment were the most likely triggers for a future downturn in prices.
“Our models indicate that house prices would need to fall by around 30 per cent to come back into line with Australia’s economic fundamentals and their own long-term averages,” Reynolds said.
Esther Yong, director at Chinese language property portal AC Advertising, said the curbs on lending to foreigners and Beijing’s restrictions had quelled interest, leaving only the most committed buyers.
“It’s been very slow for the last two to three months,” Yong told Reuters.
She said numbers on Chinese property tours – on which part of a holiday is dedicated to looking at property – are half what they were a year ago.
Nothing changed for me. It’ll be OK until the next big shock. SELL!
