Property Bubble?

22 Nov

During the week, a senior treasury official has sounded the alarm over Australia’s property market and has warned that a sudden drop in housing prices has become “the elephant in the room.”

Although at the moment, the Government and Reserve bank both officially state that Australia does not have to concern itself with the idea of a housing bubble, the Treasury has sought further research from its own analysts.

Documents gained through freedom of information laws have shoes the the Treasury is as divided as the private sector as to whether or not the Australian property market can sustain its levels of growth.

There have been concerns over a rise in household debt and prospects for further growth in the debt to income ratio. There has also been agreement that changes to our low interest rates, unemployment and financial deregulation could increase the risk of a sudden drop in housing prices.

It definitely makes for an interesting time with the Brisbane Property Market and should be best watched with a close eye.

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