Independent property buying agency Black Brick is predicting a price correction could happen in Australia, and is advising its clients to consider new markets for its property investments.
Late last week the country released its annual Financial Stability Review, and housing market concerns dominated. The report noted: “… heightened level of investor activity and borrowing could amplify the housing price cycle and increase the risk of significant price falls later”.
Ratings agency Fitch has also projected that Australian house prices are expected to rise by only 4 percent this year, down from 7 percent in 2014, making other international markets more attractive to investors seeking out the best returns.
In light of long term housing market concerns in Australia, Black Brick encourages wealthy Australian and international investors to consider other markets for more secure long term returns.
Camilla Dell, Managing Partner of Black Brick said: “The likelihood of a price correction in Australia’s property market is increasing. The Reserve Bank’s report last week is a warning to investors not to take high property prices and growing rental yields in Australia for granted.
“Black Brick is advising its clients – many of them investors from Asia – to look elsewhere for more sustainable and secure capital growth.
“With the global macro-economic picture looking increasingly uncertain, it is important for property investors to be properly advised whether they are looking to purchase property as an investment, or for owner-occupation.
Black Brick is an independent property-buying agency founded in 2007 and based In Mayfair, London, Some 60 percent of its buyers are international, and its Asian client base is one of its fastest growing. A total of 68 percent of Black Brick’s Asian client base are Malaysian, followed by 25 percent from Singapore and 6 percent from Hong Kong. Overall, 50 percent of Black Brick’s Asian clients are investors and 50 percent are buying homes.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
