If You Think The Property Boom Will Continue, You’re In For A Shock… Top Analysts Explain Why You’re Dead Wrong

The property boom is over. And if you’re an investor, you’ve missed the boat.

That’s the message of Morgan Stanley analyst, Malcolm Wood, in a note released to investors, as reported by The Sydney Morning Herald.

At least, that’s if there are no forthcoming interest rate drops.

The report claims that a potential oversupply of new apartments in inner city areas and record-high house prices will see a drop in property values without rate cuts by the Reserve Bank. Wood says, “Without further interest rate cuts, the current housing cycle is in danger of gradually fading.”

However, if the most recent signals of RBA governor Glenn Stevens is anything to go by, rate cuts may not be immediately expected. The last nine RBA meetings have produced no significant changes, with the most recent one on 2nd June 2014 seeing Stevens state that, “On present indications, the most prudent course is likely to be a period of stability in interest rates.”

Read more here.

Do you think the property bubble has burst? Or is the media merely sensationalising news about real estate naysayers?