Australia’s dwelling values are falling and mortgage rates are increasing and if in these conditions anyone is involved in property transactions like buying, selling, relocating than making a decision is the toughest task. Though home valuers can guide you in this. Sydney and Melbourne are the two capital cities of Australia and their values are falling. In the last month, the interest rates of banks have lifted and even mortgage lenders have raised their mortgage rates over the last few months.
Expert Home valuer says - “The higher borrowing cost leads to having further fall in the dwelling values of the biggest cities of the nation i.e Sydney and Melbourne.”
Now the harbor city market is exhibiting the slow growth rate and no growth in some areas. Price falling slightly in certain locations. Residential Property valuer says - “Sydney property market is turning now moving in the next phase of the property cycle.” The Sydney rental yield is also decreasing along with the decrease in property price.
The major reasons are there which decreases the Sydney homes value -
When the Sydney was in stable condition the developers supply the Sydney property market with extra buildings they could make. While the ratio at which supply of apartments increasing, people were not buying the property at the same rate. Which creates an imbalance in the demand and supply ratio. According to a report - Clearly claimed Sydney real estate property market had an oversupply of apartments.
Banks tighten lending criteria, the cause of oversupply of apartments by the developers in Sydney the banks and money lenders are feeling insecure and feel the risk in the property market. Thus they have tightened their lending criteria. Which becomes a hurdle in the front of the first home buyers in Sydney. The higher interest rate is also one of the reason.
Home buyers or investors do speculative buying of apartments which indicates “off plan”. But continuous falling dwelling values ensure the sharp reducing in property prices thus buyers will not prefer to put their money in such properties.
Weaker dwelling prices in the capital cities of Australia Sydney and Melbourne have continued to fall down the national property market in the month of September is down by 0.5 percent and 0.4 percent in the month of August with the prices down by 1.2 percent in past three months and overall 3 percent over the past year.
Sydney property market annual decline is still worst over the past years. There are various factors which slow downed the housing market among which tighter credit conditions is the prime one. Rest are a supply of houses more than demand i.e oversupply of homes, affordability challenges and less number of foreign investment.
If you are planning to buy a home in Sydney, Hire residential property valuer Sydney who possesses complete knowledge of the property market.