KEY POINTS …
Professor Shuping Shi, Macquarie University Business School:
-property prices not expected to fall substantially but might level off or fall slightly in future
-investors re-entering the market, and a fear of missing out has pushed prices higher
-investors counting on rapid gains to make a large profit
-much of this market shows indications of bubble risk
-to provide a “real-time bubble indicator” was a price-to-rent ratio; with Sydney double-digit growth in a single month
HSBC Australia Chief Economist Paul Bloxham:
-the housing market is going to cool over the coming quarters and running into 2022
-continuing border closures and stalled population growth would weaken housing demand and see price growth drop back to single digits
-the surge in demand would also drop off
-the Reserve Bank won’t turn to negative rates; no more cuts ahead to fuel further demand and price growth
-with strict lending standards, housing market fundamentals and the closed border will see the market cool *
READ TO LEARN MORE ABOUT THE HOUSING FEVER WEBSITE!
Australian property market showing signs of bubble risk, academic modelling finds
COMMUNITY ACTION ALLIANCE FOR NSW (CAAN): HOUSING INEQUALITY WITH AUSSIES LOCKED OUT! 