Sydney’s housing boom near its peak
Australia’s largest brick supplier believes Sydney’s property boom may have run its course.
Brickworks managing director Lindsay Partridge has told the Australian Financial Review that property prices in Sydney may be close to their peak.
“I don’t think there’s much more upside,” Partridge told the AFR.
But Partridge said he doesn’t believe there will be major declines for Sydney prices.
“I don’t think there’s any risk of a fall. People will just hang and wait for the next cycle,” he said.
Partridge dismissed the idea of a housing market crash in Australia, and said most borrowers had built up a buffer of extra mortgage repayments.
“The banks will tell you that most punters are 18 months or two years ahead in their payments,” he told the AFR.
Partridge told the AFR the one risk to the property market came from tighter rules being imposed on foreign property buyers.
“They may have overstepped the mark there,” he said.
Partridge told the AFR the level of apartment construction activity in 2015-16 was more than double the long-term average. He said the higher level of apartment building in NSW was catching up with demand, which had been curbed by tighter land release policies put in place by former NSW Premier Bob Carr.