property boom over ! - westpac

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    Westpac pulls plug on city units
    By Andrew Fraser
    July 18, 2003

    WESTPAC chief David Morgan claims that the Sydney and Melbourne inner-city housing markets are overheated and, as a result, the bank has started cutting back its lending in this area.

    Speaking at a Queensland University of Technology business lunch in Brisbane yesterday, Dr Morgan said business loans would make up some – but not all – of the shortfall in the company's loans profile.

    "We have an explicit policy to cut back on inner-city apartments in Melbourne and Sydney because we think they are the two most overheated sectors in the entire housing market," he said.

    "The major signs that we're starting to see the boom coming to an end is developments being pulled off the plans for new buildings, the vacancy rates starting to creep up, and some signs of price weakness."
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