The auction stand-offs may indicate that the Sydney market, which has been defined by researcher Demographia as the second most unaffordable in the world after Hong Kong, has finally hit a peak. One big concern is the drop off in the number of Chinese buyers, following a crackdown by Beijing on capital outflows and Australia's tightened restrictions on lending to foreigners. She said numbers on Chinese property tours — on which part of a holiday is dedicated to looking at property — are half what they were a year ago. "We think there's still a bit of steam in the Sydney market," said Ausnet Chief Executive Paul Niardone, a former public relations executive. If the heat continues to seep out of the market, agents will be among the first to be hit.

Source: The Edge Markets February 05, 2017 19:52 UTC