AMP Oliver’s Insights – The Australian Housing Market
AMP’s Dr Shane Oliver discusses the key issues facing the Australian housing market in this edition of Oliver’s Insights.
Dr Oliver summarises the key points as follows:
The Sydney and Melbourne property markets have hotted up again and high house prices and household debt leave Australia vulnerable. But a property crash remains unlikely.
Expect average home prices to fall 5-10% once an interest rate tightening cycle gets underway in 2018-19. Sydney and Melbourne unit prices are most at risk.
More macro prudential measures to slow property demand are likely on the way. Alleviating poor affordability over the long term is best addressed by boosting supply.
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