No Property Bubble In Australia – Westpac
According to Westpac Banking Corp the short supply of residential properties are keeping property market prices on sunstainable rate.
According to Bill Evans (chief economist )At Westpac “[There is] an imbalance between the demand for housing, which is associated with strong population growth, and the supply of housing,”
He added
“While we accept that housing is relatively expensive, issues about prices, incomes and affordability are more complex than the simple measures used to show over-valuation,”
He pointed some reasons as why the property bubble is just a myth some of them are :
Lower supply then demand: Australia’s population has grown by an average 305,000 a year in the past decade, while housing supply has risen by about 105,000, leading to a shortage of about 200,000 homes
Ability to pay : Ability of many households to pay more to compete for the dwellings that are there has increased.Buying power of average household income has risen over the past 20 years. As well, more households are now dual income households.