{"id":2669,"date":"2017-04-26T12:00:30","date_gmt":"2017-04-26T11:00:30","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=2669"},"modified":"2017-04-26T12:00:30","modified_gmt":"2017-04-26T11:00:30","slug":"ubs-forecasts-end-australian-bubble","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/2017\/04\/26\/ubs-forecasts-end-australian-bubble\/","title":{"rendered":"UBS forecasts end of Australian bubble"},"content":{"rendered":"<p><strong>Investment bank UBS has called the top of the Australian housing market.<\/strong><\/p>\n<p><a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2017\/03\/03\/melbourne-sydney-see-property-price-growth\/\" target>Property prices in Australia<\/a> have been rising rapidly, with growth currently at a seven-year high of 13 per cent. However UBS is predicting growth to slow to seven per cent in 2017 and then drop as low as zero per cent next year.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"ZeWCzCeduG\"><p><a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2017\/04\/05\/sydney-prices-continue-increase\/\">Sydney prices continue to increase<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Sydney prices continue to increase&#8221; &#8212; BuyAssociation Group\" src=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2017\/04\/05\/sydney-prices-continue-increase\/embed\/#?secret=w72zjCDxcP#?secret=ZeWCzCeduG\" data-secret=\"ZeWCzCeduG\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>&#8220;After housing activity rose consecutively for over four years, its longest ever boom, we are now calling the top and think that housing activity has already peaked,&#8221; commented UBS economists Scott Haslem, George Tharenou and Jim Xu in a note to their clients. <\/p>\n<blockquote><p>&#8220;We see a moderation ahead amid record supply and poor affordability, with the new buyer mortgage repayment share of income spiking to a decade high.&#8221; <\/p><\/blockquote>\n<p>They cited the higher interest rates and tighter mortgage lending rules as the reason for their prediction of weakening demand. However, they have suggested that prices would correct in a sharp downturn (as opposed to a full crash) because of population growth and the absence of any Reserve Bank rate hikes.<\/p>\n<p>The forecast comes as Australian regulators are attempting to <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2017\/02\/08\/australia-demands-property-sales\/\" target>cool the local market<\/a> by reducing the amount of risky lending, especially on interest-only and buy-to-let investment mortgages.  <\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"J54YKKuiN2\"><p><a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2017\/01\/26\/australian-property-market-feel-effects-chinese-restrictions\/\">Australian property market to feel effects of Chinese restrictions<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Australian property market to feel effects of Chinese restrictions&#8221; &#8212; BuyAssociation Group\" src=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2017\/01\/26\/australian-property-market-feel-effects-chinese-restrictions\/embed\/#?secret=Y7W0M1xWW8#?secret=J54YKKuiN2\" data-secret=\"J54YKKuiN2\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>The Australian Commonwealth Bank raised fixed rates on Friday, specifically targeting investor loans. Just three days later Westpac increased its interest rates accordingly.<\/p>\n<p>It is understood that buyers in Australia are now putting an average of 28 per cent of their incomes towards their mortgage repayments on a monthly basis. This is five per cent higher that the average, causing UBS to warn that a 100 basis point rise would make repayments unaffordable for many.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investment bank UBS has called the top of the Australian housing market. Property prices in Australia have been rising rapidly, with growth currently at a seven-year high of 13 per cent. However UBS is predicting growth to slow to seven per cent in 2017 and then drop as low as zero per cent next year.<a class=\"excerpt-read-more\" href=\"https:\/\/www.buyassociationgroup.com\/en-au\/2017\/04\/26\/ubs-forecasts-end-australian-bubble\/\" title=\"ReadUBS forecasts end of Australian bubble\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":1069,"featured_media":4385,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[141],"tags":[218,214,229],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/2669"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/comments?post=2669"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/2669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media\/4385"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media?parent=2669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/categories?post=2669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/tags?post=2669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}