Sydney's housing bubble deflates as loans revisit GFC declines

Well Sydney generally is a crap place to live and the recent arrivals make things even more congested.

Now that housing stock has increased, there is likely to be too much when people generally start leaving to start an affordable life elsewhere. Only stupid people buy a million dollar property at Australian median salaries with only 20% deposit. The median will drop to what people can afford and the actually to what the banks will lend. It’s hard for government to do bailouts so banks are wary, that’s causing lending to decrease to risky people.

Sydney and Melbourne are just not rationally affordable. It will be a slow decline until prices return to 2014 levels and then they will increase at the rate of inflation for a decade. Nobody from China will rush in to buy again, this Sydney crash that is happening now will teach them just as the Gold Coast taught the Japanese.
The Indians might get hooked next time though.

FOGO is happening. Fear of getting out of the property market in time. A rush for the exits.

 

Sydney is not a crap place to live.

You failed to make enough money to live in this city.

 

Tell that to my employees that spend 2.5 hours commuting around sydney ferrying kids to sport and double that on weekends stuck in traffic.

Sydney is a basket case adored by people that when they get to a place that offers quality of life turn around and say, " dammn wasted my life in Sydney for so many years"