It comes after Australia’s richest man, billionaire property developer Harry Triguboff, warned that a “very significant” number of Chinese buyers were now failing to settle their off-the-plan units and urgent action was needed.
Earlier, broker CLSA predicted a looming apartment “crisis” that would be kicked off by a wave of defaults forcing smaller developers into receivership, pushing down prices and potentially causing wider contagion that could lead to a recession.
The ISSA described moves by Australian banks from July this year to restrict or even withdraw funding to foreign property investors as “almost cartel-like policies”.
“The policies, now in place by all major Australian banks, were instituted in anticipation of an economic downturn internationally and domestically, but which, in fact, actually trigger or exacerbate such a downturn,” the article said.
Thursday, September 15, 2016
Australia six weeks from a housing collapse, US report warns
Nine students own $57M worth of Vancouver property
A total of $40-million worth of that property involved securing a mortgage.
Fundamentally, Eby is concerned this lax lending approach by some Canadian banks may be contributing to real estate speculation and the rapid price increases we’ve seen in our real estate market in recent times.