Mirvac thinks Sydney property is nearing the top of the market

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Property developer Mirvac sees the Sydney housing boom nearing the top of the market.

CEO Susan Lloyd-Hurwitz, presenting the company’s annual results today, said: “It does seem that the Sydney market is close to the point at which the strong upward trajectory will end.”

The market has been running hot but regulators recently moved to restrict the amount of investment lending for property.

Sydney prices are up 39% in the past three years and Melbourne in 22% higher.

Mirvac posted a 36% rise in full-year profit to $609.9 million on the back of a strong market in Sydney and Melbourne.

Lloyd-Hurwitz said previous cycles suggest that sales will moderate for a year or two by 15%.

“Importantly we don’t believe this will lead to price falls rather we expect price growth to moderate away from the double-digit growth rate that it has been experiencing,” she said during a briefing.

The company expects operating profit in 2016 to be between $470 million and $482 million.

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