Category Archives: Australian property bubble or not?

Australian consumer confidence at dire levels

Australians appear, at least on the outside, to be a fairly lucky bunch. Having avoided the major impacts of the GFC, profiting from a rapidly expanding China which has been chewing up as much as the Aussie miners can shovel … Continue reading

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Australian Housing Credit Growth Levelling Out?

Australian Property is an interesting beast. Some call it a bubble ready to pop, and others say Australia is different from the rest of the world’s property markets, and is anything but a bubble. This blog doesn’t take a position … Continue reading

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Australia’s housing – this all looks sustainable.

Australian housing is set to rise onward forever without a problem. Or….not.

One of the world’s pre-eminent ‘bubble hunters’ Edward Chancellor, from US investment bank GMO, says that Australia’s housing bubble is looking precarious as it is by his estimates up around 50% more than fair value.

Mr Chancellor, speaking to The Australian said “If house prices were to revert to their historic long-term average (ratio of average price to average income) they would fall quite considerably.” Failing to do so would defy every asset bubble in history. Continue reading

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