This is the headline from an article by Anthony Keane in the Courier Mail from June 25.
The article quotes AMP economist, Shane Oliver about the differences between the US and Australian situations. He notes that “the US had both a price bubble and a building bubble before its recent crash, while Australia only had a price boom and it is estimated we still have a housing shortage of 200,000 homes.”
Oliver is also reported as expecting Australian house prices to pick up in Spring and then grow in line with inflation for several years.
Also in the article, HSBC’s chief economist for Australia and New Zealand, Paul Bloxham, notes Australian home prices are high by global comparisons for good reason – an undersupply of homes and an urban structure with most people living in big cities with few apartments. In his view, “If there was a risk, you would see house prices fall dramatically – you already would have seen it happen”.
These views agree with several commentaries we have recently reported.