The latest data provided by CoreLogic, shows house price growth continued to surge in Sydney with capital growth of 18.4 per cent over the last year.
The question now is: Are we seeing the top of the market?
Especially after recent rate increases on investor loans and changes to loan-value ratios? APRA (the Australian Prudential Regulator) flagged to banks that investor lending growth that is over 10 per cent will be viewed as a risk indicator in considering whether further action should be taken. With approval from the Reserve Bank, commercial banks have independently raised rates on new investor loans by between 0.27 per cent and 0.29 per cent. Many have also lowered the acceptable loan to valuation ratio (LVR) for new loan applications.
Sydney’s house price growth is not out of control when viewed over a longer time frame.
Debate about Sydney’s property boom bombards us almost every day, but as the chart from CoreLogic shows, even in Sydney, house price growth has been reasonable. An average annual growth rate of 5.7 per cent over the last 10 years is nothing to be alarmed of.
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
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