Facing up to the new credit squeeze

Challenges will emerge in our property markets as overseas buyers face new barriers to purchasing apartments.

Summary: The mining slowdown has in part been cushioned by Australia’s construction sector and the flow of funds into our major housing markets from Chinese investors purchasing new apartments. However, there are trends that could spell a slowdown on the horizon: for instance, we are seeing a two-tier market where, because overseas investors can only purchase new property, they are buying off the plan at and a higher price than local investors are willing to pay when that same property comes onto the market. The increased difficulty of getting funds out of China means a greater reliance on Australian banks to fund property purchases – and if our banks’ loan books extend beyond APRA’s requirements, banks will have to raise more capital.

Key take out: I believe if these trends play out, there will be trouble – it’s important for Eureka readers to be across the situation and think about their exposure to bank shares.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Email is required.
Email must be a valid email.
Password is required.
First name is required.
Last name is required.
Mobile phone number is required.
You must accept the terms and conditions.

OR

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
Discount -{{productDiscount}}
GST {{productGST}}
TOTAL   (inc. GST) {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Login or to reset your password, select Forgotten password

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Related Articles