When a financial institution's ability to lend money becomes compromised due to unreliability or instability, it can have significant repercussions on the real estate market. Specifically, if banks are no longer seen as trustworthy lenders, this could cause apartment prices to plummet drastically.
The statement underscores the critical role that financial institutions play in the stability of housing markets. Banks not only provide loans for purchasing homes and apartments but also underpin confidence within these markets by offering consistent lending practices. When trust in these institutions wavers, potential buyers might lose faith in their ability to secure mortgages, leading them to delay or cancel purchases. This reduction in demand would likely cause apartment prices to fall sharply as sellers lower asking prices to attract buyers.
Harry Triguboff is an Australian property developer and entrepreneur who has been influential in the development of large-scale housing projects across Sydney, Australia. Known for his extensive experience in real estate, he often shares insights on market trends and economic conditions affecting the housing sector.
