In our April and May surveys we recorded sharp declines in most measures of market activity following the reimposition
of Loan to Value Ratio rules and the March 23 announcements around interest expenses deductibility and the brightline
test. This month, our survey undertaken at the end of May received 289 responses and shows most things very little
changed from a month earlier – apart from more first home buyers seeming to be taking a step back from the market.
There is still FOMO, and agents still overwhelmingly feel that prices are rising in their location. But interest from
offshore continues to decline, investors are still in a wait-and-see mode, and buyers still remain concerned about a
shortage of listings. In fact, the proportion of agents feeling that more investors are coming forward to sell their
properties has decreased over the month.
On the basis of our many indicators it is difficult to say anything other than that things still seem to be in a holding
pattern, perhaps as clarification is awaited on the rules surrounding definition of a new build in particular, as winter
is now upon us, and as many people perhaps simply take a breather after the frenzy between August and March.For more information, please see the full report (attached).