Sydney Morning Herald: Australian real estate may experience a once-in-a-century turning point
Sydney Today, the latest report on March 3, Australian Eastern Time pointed out that the Australian real estate market is undergoing a once-in-a-decade turning point due to the delay in entering the market by buyers who are wary of debt.
In Fujitsu Australian's loan market research report, JPMorgan pointed out that banks need to adjust the level of interest rates to bring loans back to the "new normal" level-loan water may drop to half of the level before the financial crisis. Martin North, CEO of Fujitsu Australia & New Zealand, said: "I think it is unlikely that the property market will return to the level around 2005." Stimulated by the "deposits" caused by the low interest rate of the central bank and the increase in the value of homes of owners Under the circumstances, real estate mortgage loans grew at an annual growth rate of 1996% from 2006 to 15.2.
During that period, Australia's home loan-to-value ratios (LVRs) also increased, and then rising LVRs—the relative size of the mortgage on the value of the loan to the family—in turn promoted the demand for home mortgage loans. However, after the 2007 financial crisis, the growth rate of the real estate credit market almost halved to 8.3%, and this level will continue in 2012 and the next few years. The report also pointed out that: Looking ahead, we hope that the real estate credit market can respond more to basic factors, such as a standardized loan-to-value ratio, a moderate increase in investor housing credit, and stricter and more expensive commercial residential real estate financing costs.
Despite an estimated 18 affordable housing shortage in Australia, the faltering demand for housing loans has caused house prices to continue to fall in the past few years. The housing market has begun to show signs of tension during the past year of stagnation.
The international rating agency Fitch reported yesterday that the proportion of mortgage loans 2011-30 days overdue in the last quarter of 59 unexpectedly rose from 1.52% in the third quarter to 1.57%. But Fitch also pointed out that the only factor in the deterioration of mortgages is house prices, which fell 4.8% last year. However, not all comments on the outlook are pessimistic.
ANZ Bank’s regional report on housing pointed out that residential properties will “find their place” in 2012 due to lower mortgage interest rates and rising incomes to ease the pressure of buying houses. (Wendy)
English version: http://smh.domain.com.au/real-estate-news/report-finds-property-markets-seismic-shift-20120328-1vxxn.html