Home News Housing crash unlikely even as oversupply looms

Housing crash unlikely even as oversupply looms

Font size :
The National Australia Bank (NAB) has issued a caution against housing oversupply, as fewer foreign buyers and slower population growth affect house prices.

According to NAB global head of research Peter Jolly, while prices of residential properties in Australia have increased four times over in the past 20 years, this trend may soon be overturned.

While low home loan rates are set to continue, the lack of foreign buyers and slower population growth might eventually take a toll on house prices. Jolly explained that Chinese buyers who were avid buyers then of Australian homes have lessened their appetite. Also, demand for houses has decreased alongside lower population growth.

“There are certain markets that are heading into some oversupply,” said Jolly, speaking at an Actuaries Institute Seminar in Sydney.

“We see much more modest house price gains in most cities, and a bit of a decline or a continued decline in Perth.”

Jolly added that in some parts of Melbourne, Brisbane, and Sydney, there has also been a decline in the unit markets where there was a very clear oversupply.

But even as prices of residential dwellings are set to cool, NAB is confident this would not cause a housing crash.

“NAB’s view on housing is that we’re going to see the housing markets cool appreciably over the next year or two,” said Jolly.

“Standalone house price growth rates will slow quite a bit, and we actually see unit prices declining.”

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Mortgage applications drop in second quarter Mortgage applications drop in second quarter

This marks the “beginning” of a downward trend, says Equifax executive Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Jul 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords