The Sydney-based Meriton developer has stopped purchasing Sydney land, “sending land values intro freefall” according to The Australian columnist Robert Gottliebsen.
He says the only reason that the Melbourne crunch is being delayed as developers are proceeding with construction because they have old permits that allow greater density than the new rules. “If they don’t proceed the opportunity will be lost,” he said.
The news comes as HSBC revises its housing price forecast – the bank now expects Sydney property prices to fall 3-5% over 2018 and Melbourne to gain 1-3%. Previously they had forecast a 2-4% gain for Sydney and a 7-9% gain for Melbourne.
In the past, lower apartment prices have hurt village sales as village operators lose their price advantage.