Falling Sydney and Melbourne home prices – is this the crash?

Falling Sydney and Melbourne home prices – is this the crash? What about other cities and the impact on the economy?

Key points:

  • Property prices in Sydney and Melbourne likely have more downside, but a crash is unlikely in the absence of much higher mortgage rates, much higher supply and a long continuation of recent high construction activity.
  • Other cities will perform better.
  • Property investors should remain wary of Sydney and Melbourne and focus on laggard or higher yielding markets.


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