A new report ranks global property markets as fair valued, overvalued or in bubble risk territory.Experts warn prices will not necessarily fall back to levels that would be fair value.Sydney property prices are “highly overvalued” despite their recent falls, a report from global investment bank UBS has found.
It said home prices had drifted apart from incomes and rents during the past decade because of years of ultra-low interest rates. “Housing is thus also becoming less attractive as an investment, as borrowing costs in many cities increasingly exceed the yields of buy-to-let investments.”Sydney property prices surged by more than 30 per cent in 2020 and 2021 before “aggressive” interest rate rises and tighter lending standards sharply reduced affordability and started to push prices lower, the report said.Sydney scored 1.19 on the index. A score of 0.5 to 1.
“It’s been an ongoing issue for property in Australia, but particularly Sydney, and Melbourne to a lesser degree, that normal ways of valuing them – like comparing where interest rates are or, if you like, that ratio of average property prices to average rents – puts them as well overvalued,” he said.
elizabethredman They always have been. What's new?
elizabethredman No shit Shirlock
elizabethredman The last time I checked every young family wants a nice house within 20kms of the cbd. Sh*tty apartments maybe, but not quality. Not with that demand.
elizabethredman Scott Cam nightmare!
elizabethredman Things are worth what someone is willing to pay
elizabethredman
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