Robert Klaric, the founder and CEO of The Property Expert International, was interviewed by Sky News whereby he claimed that “virtually, across the board, we’re seeing around a 10% correction to our market already in the last six-week period”.
Klaric also forecast that we are “likely to see a 10 or 20 per cent reduction in terms of property values”:
“The negotiations have become, certainly, a big difference between the asking price and what they are purchasing the property for”…
“From a buyer’s perspective, they’re thinking well why should I buy now when, potentially, I’ll be able to get the same product a lot cheaper in the next three, six to 12 months”…
“Everyong said to me that the banks are being cautious. So you need to have strong financials, strong employment history to get the funding”. If there’s any grey area, the banks don’t have an apetite for lending at all…
“We are going to see a lot more distressed sales over the next six months”…
“At the moment the market is sinking”
It’s a view shared by SQM Research managing director, Louis Christopher, who noted that “we are very much aware of the real estate industry advising their vendors that the prices achieved in February and January are no longer achievable now:
“I’m hearing anecdotal reports of the banks cutting new lending”…
“It will be very interesting to see when we get to August. Will the banks roll over that moratorium [on mortgage repayments] or will they start calling in loans”…
“These are very difficult days for property investors. We are getting zero net migration. So we are looking at a surplus of stock”.
“On top of that, because short-term arrivals are zilch, it means a whole bunch of Airbnb properties have zero tenants in them right now, so those property owners are looking to move those Airbnb into the long-term leasing market creating an additional oversupply”.
Nothing readers of MB don’t already know.
