rospects for growth in the residential property market are the worst in 30 years, which is when Bob Hawke was prime minister and the median property price for a Sydney house was $141,000, according to analysis by investment bank Morgan Stanley. Regulatory, credit, economic and supply issues are combining to tighten supply and weaken demand after six years of growth and booming prices in major cities, particularly in Sydney where prices have jumped by more than 70 per cent since 2002, it warns. The bank's model for signalling additional weakness in price and volumes is languishing as tightening credit supply pushes its six economic indicators into negative territory. "Risks are skewed to the downside," the report concludes.
