Please click here to view Shane Oliver’s views on the Australian property market.
Key points raised are:
- Predictions of an Australian house price crash create lots of interest but have been a dime a dozen over the lat 20 years.
- However there is more to the surge in property prices than easy money with a supply shortfall being the main factor.
- Absent much higher interest rates and or unemployment a house price crash in Australia looks unlikely.
- The key to sustainably improving housing affordability is to boost supply, better align immigration to housing supply, reduce or delay public infrastructure spending, encourage decentralisation and tax reform.
- A failure to boost affordability risks a further slide in home ownership and rising inquality.
