Economist warns property market about to turn

PSIS chief executive Dr Girol Karacaoglu said all indications pointed to a property market which had reached its peak across the country.

He warned about buying a property now for investment or over-capitalising on home mortgages.

Dr Karacaoglu looked to three key indicators to predict the turn. The number of days or weeks a property was on the market had risen; prices had stabilised; and rising interest rates.

"In the next year or two I think the property market will slow. The driver is the rising interest rates. . .

"The only debate is whether the market will come down or stabilise."

Dr Karacaoglu said people with mortgages on houses around the $400,000 mark would feel the pinch of interest rates more than those homes valued between $100,000-$300,000.

Dr Karacaoglu said first home buyers should still try and get on the property ladder. But those looking at a second rental property or investing should be more cautious.

"Investors are getting in at the wrong time."

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