House prices in Australia may fall by 30%, Bloomberg reports. This will happen in case of worst scenario developed by UBS Group AG.

In the worst out of five scenarios, growth of Australian economy observed during 27 years will come to end, unemployment level will rise and central bank will reduce interest rate to zero. However, at the moment bank predicts third scenario assuming market correction, but warns that credit risk is growing.

Australia’s housing market slump has been observed for second year, as tightened restrictions on lending reduced credits availability and put pressure on market. Sydney and Melbourne that were in leaders in the past, now show decline by 7,4% and 4,7% respectively.

While rate of Reserve Bank of Australia stays at record low level of 1,5% since August 2015, regulators introduced rules for stricter checks for mortgage credits.