property crunch


PHOTO: 123RF Sydney and Melbourne make up about half Australia’s residential real estate market, so wobbles there affect the rest of Australia.

Tightening bank lending is leading to a property crunch in Australia and it could also happen here, a housing commentator says.

Christchurch-based Hugh Pavletich of the housing thinktank Demographia says reports of Sydney and Melbourne houses losing $1000 a week are a result of rising interest rates and the Australian banking inquiry, making banks ultra-cautious.

​Pavletich said that in Australia, the housing bubble was bursting. “The days of high multiple-lending are over”.