Two more articles have surfaced in recent days allaying fears that a potential housing bubble exists in Australia. In our BLOG on 19 September, we referenced a speech by RBA assistant governor, Malcolm Edey from an article in The Australian, where he believd that talk of a housing bubble was “unrealistically alarmist”.
As reported in The Australian on 26 September, ANZ chief executive, Phil Chronican has labelled as “overstated” talk about a property bubble. However, he did note that it was critical for Australia to build more houses and apartments to blunt prices.
Michael Matusik reinforces this view in his Missive from 28 September. Matusik notes persuasively that one of the problems with reporting house price movements is that median and mean house prices do not reflect real price growth of individual houses. Mean values can be affected by new projects in some areas, particularly around key infrastructure. Mean and median prices are also affected by renovations – the price might increase but the underlying value may not.
Information on Law Property Australia new homes can be found at our NEW HOME OPTIONS page.