Property Bubble Australia
From past few months we were hearing about how the Australian property market was booming.But remember the old saying – Things what goes up comes down, same might happen with the Australian property market as according to Reserve Bank of Australia governor Glenn Stevens Australia should use the downturn as an opportunity to build more residential housing in order to avoid another pricing bubble.
Economist Steve Keen of the University of Western Sydney also stated that
“The Boost has … given Australia a dubious distinction when compared to the rest of the OECD. Yes, we are the only country that avoided a technical recession; but we are also the only country where debt levels are rising once more compared to GDP, rather than falling,”
He thinks that the Australian home prices could mimic Japan’s decades-long slump.
Talking about general public, 60 per cent of investors believe Australia has a property bubble.