House prices have been on an upward trend for the past 3 years because of the high demand for property, but that is about to change according to Investment bank Morgan Stanley. According to their recent report, house prices have been heavily reliant on the interest rate and without further cuts the property market is in danger of dropping in value.
An influx of Units and Apartments in inner cities areas have been on the rise, causing economists to fear an oversupply will cause property prices to drop dramatically. Interest rate cuts are expected to ease the effects of this sudden growth. Meanwhile, The Reserve Bank on its recent board meeting last June 3 has declared no changes to the interest rate.
Read more about this on the Sydney Morning Herald website.