According to new research from the UNSW and Western Sydney University, Sydney’s west is most exposed to an investor property bust:
The analysis reveals high concentrations of property investors in western Sydney made the region prone to housing bubbles. Associate Professor Lee said the region accounted for half of all housing investors claiming investment losses or negatively geared property across Greater Sydney in 2016, while rental properties made up about 35 percent of all private dwellings in the region in 2016.
Housing investors dominated the market in NSW throughout most of 2014 and early 2015, taking the majority of new monthly home loans. But that pattern has shifted and so far this year, owner-occupiers have taken about 70 percent of all new home loans.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
