Sydney Housing Boom as Median Prices Rise
In Sydney, median prices rose about A$1,200 a day last month, with buyers willing to pay a premium for uninhabitable homes to tear down and rebuild. The current demand is still largely driven by owner occupiers, not investors. Sydney houses with crumbling walls, shredded ceilings, and bathrooms and kitchens stripped of fixtures are getting snapped up for millions as buyers try to grab a slice of Australia's soaring property market. Property agents said they expected to see more such sales in Australia's A$8.3 trillion housing market. Home prices nationally have surged 10.6% from a year ago driven by record low borrowing rates, tax incentives and solid employment growth. The frothiness in the market is starting to worry Australia's Council of Financial Regulators who said last week there were signs of increased risk taking in mortgage lending by banks, although standards remain sound nationwide. The Australian Prudential Regulation Authority (APRA) said it has written to banks seeking "assurances that they are proactively managing risks within their housing loan portfolios, and will maintain a strong focus on lending standards and lenders' risk appetites." Conisbee said the threat of tighter prudential lending standards was a risk to the market.
Tags : INTERNATIONAL Australia Sydney home price Rise Housing Boom Australian Prudential Regulation Authority (APRA)