PHOTO: Australia
A dramatic fall in one particular section of the property market has dragged down house prices and led to losses not seen since the GFC.
The sharp drop-off in investors purchasing properties dragged the national housing market to its heaviest losses this side of the Global Financial Crisis, experts say.
The falls were exasperated by policies that limited access for overseas investors, including the percentage of dwellings in new apartment buildings allowed to be bought off shore as well as a stamp duty hike.
The value of lending to investors was down 45.4 per cent in April from its peak in April 2015, according to the Australian Bureau of Statistics.
Four years ago, investors were borrowing $12.5 billion but that fell back to $6.8 billion.
“We are now looking at a very different property market to what it was like during the boom,” realestate.com.au chief economist Nerida Conisbee said.
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