How a house price “soft landing” turns into a crash

Monday, 18 September 2017

Flufferfax asked on the weekend what’s next for house prices:

After a five-year bull run, in which house prices have surged 75 per cent in Sydney and 56 per cent in Melbourne, the party may be over for those who have bet big on the property boom.

A combination of tougher APRA lending rules, rising unaffordability, new taxes on foreign buyers, and shrinking rental yields have all combined to take the heat out of the investor-led market.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.