Australian property is looking fragile, particularly in Sydney and Melbourne. Some factors that suggest we are at the calm before the storm:

  • Ever more properties on market
  • Selling booths for apartments back in malls
  • Several hundred new apartment buildings under construction in Sydney
  • New building approvals fall
  • Crack down on interest-only loans
  • Price growth slowing or falling
  • Auction clearance rates falling

But best of all, a local fund manager, Phillip Parker, has sold everything and returned the cash to clients. He says the Australian economy is in trouble but that “the overheated local property market … was the clearest and most present danger”

I have attached a link below to an article interviewing him. Interesting times ahead, in the Chinese meaning of the phrase.

http://www.smh.com.au/business/markets/fund-manager-hands-back-cash-to-clients-citing-looming-correction-20170529-gwfgua.html