Investors still baulking at property market, with more apartments in the pipeline

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While property prices seem to have turned the corner, there are still plenty of mixed messages around lending and building that are clouding the picture in the real estate market.

urged business to advantage of the record low interest rates"At low interest rates, many investments that didn't make sense at higher interest rates should now make sense," Dr Lowe said., Mr Elliott said ANZ management was currently considering lowering its hurdle for investment, with the current cost of capital benchmark of 10 per cent cut to around 8.5 per cent, or lower."Credit conditions are benign, but will inevitably turn at some point," he said.

JP Morgan's Ben Jarman said the September bounce was probably more a result of"standard volatility than a new dawn". "Building approvals have been very weak lately, with the annual rate at -19 per cent over the year, and levels down 39 per cent from the peak of the cycle around two years ago," Mr Jarman said.

He said the rebound in house prices of late will help stabilise the home-building outlook over time, but it is unlikely the slowdown has bottomed out. "The lags from better price outcomes, the weakness of bank lending for new build, and the significant pipeline of homes still to be completed and sold suggest that the turning point in the home construction cycle is still some way off," Mr Jarman said.

 

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Who can afford these poorly built apartments anyway?

I'd rather live in the bush.

The Ponzi has to be protected.

Buy an apartment...get what's coming to you.

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