【Bloomberg】Property Slump Nears End as Sydney Prices Snap Two-Year Decline

Key Insights

• A triple dose of positive news is flowing through to the property market: the central bank cut interest rates last month, the banking regulator has proposed easing mortgage-serviceability rules, and the opposition Labor Party’s surprise election loss killed off plans to wind back tax breaks for property investors.
• In other signs sentiment is improving, auction clearance rates are holding above 60% in Sydney and Melbourne, realtors are reporting bigger crowds inspecting properties and lenders are getting more inquiries from borrowers, CoreLogic’s head of research Tim Lawless said.
• However, a rapid recovery isn’t on the cards. The economy is struggling outside the commercial hubs of Sydney and Melbourne (where home prices rose 0.2% last month), lenders are still taking a tough stance on approving loans, and there’s a glut of apartments hitting the market.

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