“The rise in the size of deposits this year has meant that many households determined to purchase have been forced to consider options at the lower end of the property spectrum, with off-plan properties in particular, being viewed as good value,” states a new report issued by Cluttons.
Now, off-plan is attracting investors with a longer holding perspective in mind. “Almost a year after the introduction of the Federal Mortgage Cap, the residential market appears to have finally succumbed to the stringent deposit requirements imposed on buyers,” the report added. “Last year’s extraordinary growth was clearly unsustainable and we are now entering an anticipated period of more measured and sustainable expansion.”
“While the market continues to adjust to the changes in the financing landscape, we expect the gradual softening in values to persist over the next three to six months while the market adjusts to the evolving conditions.”