With the property markets in Sydney and Melbourne projected to reach new peaks by the end of 2020, it’s back to ‘square one’ for housing affordability. There is also likely to be a new tipping point as well as potential for the reintroduction of macroprudential measures by APRA. According to RiskWise’s latest Risks & Opportunities…
Articles by Doron Peleg
is the CEO/Founder of RiseWise Property Review. He has more than 20 years’ experience in risk management including, Co-Founder of Peleg, Kessel & Co, an assurance and advisory accounting firm & Executive Manager at Westpac Banking Corporation in Sydney. www.riskwiseproperty.com.au/
Lenders are reluctant to lend and buyers don’t want to buy when it comes to high-rise developments. That’s according to RiskWise Property Research’s latest analysis of the construction industry which has been hit hard over recent months following the high-profile cases of the Mascot and Opal towers in NSW. With cracks in both the Sydney…
An increase in investor activity in the latter half of 2019 has stirred the interest of first home buyers and owner-occupiers as they return to the property market. Last year, RiskWise Property Research detailed the effect investors had on the market and how their response to market forces affected that of owner-occupiers. When the “investor…
The $2 billion Carmichael coal mine, one of Australia’s largest thermal coal mines, will comprise six open-cut pits and five underground mines covering about 447sq km. Adani states it will produce between 10 to 15 million tonne per year of coal, with an option to increase this to 27 million tonnes. Employment creation figures have…
The risk of poor demand for high-rise units is increasing as recent major issues in their construction impact the market. The impact of the current situation with Mascot and Opal towers, combined with the NSW Government’s promise to conduct the biggest shake-up of the construction industry that this state has ever seen could be so…
While, overall, there has been a major reduction in the number of units in the pipeline, there are still areas where the stock is well exceeding population growth, and which continue to have high risk. The apartment oversupply was largely contained to rental properties where there was a high concentration of new small units. In…
APRA’s scrapping of the 7 per cent ‘stress test’ buffer on home loans will effectively see a 9 per cent increase in borrowing capacity for owner-occupiers which will rise to between 13 and 14 per cent if the RBA undertakes two interest rate cuts before the year is out. With the current ultra-low interest rate…
RiskWise Property Research has significantly downgraded the risks to our real estate market, particularly in the Sydney and Melbourne property markets, following the shock results of the Federal election. Labor’s loss has eliminated the number one risk to the property market and this, combined with the high likelihood of interest rate cuts by the RBA…
The property market will remain weak well into 2020 unless the RBA cuts interest rates and these are passed on by the banks. However, it was the introduction of lending restrictions by APRA, followed by the greater scrutinisation of loan applications as a result of the Royal Commission, that was the catalyst for the downturn….
The Prime Minister’s plan to help first-home buyers purchase with only a 5 per cent deposit could have a major impact on the broader economy. The Coalition’s First Home Loan Deposit Scheme, particularly in the current market and with the increased likelihood of interest rate cuts by the RBA, was by far more effective than…