Padley: Don't buy the bubble hype

John Hempton, a renowned Sydney based hedge fund manager, has doused fuel onto the property bubble debate. In an article published by Fairfax, Hempton shares details of an expedition undertaken to explore the 'underbelly' of Sydney's property market. The gory tale of empty apartments and dodgy lending has created some serious hype. The suggestion is that fraudulent mortgage lending practices are endemic - leaving the 'Big Banks' dangerously exposed. Marcus Padley believes the claims are self-serving and overstated. "My reaction is that these are a couple of guys that have seen too many films and are trying to do something smart and raise their profile... The core [of the property market] is fabulous. But there are spikes. There are parts where the apartment markets have gone nuts or where Chinese have bought in to a particular suburb and it has shot up." In this candid interview Padley explains why he thinks a more measured approach is justified.”