Australian property is the most over-priced relative to wages in the world. However, the fall in house prices, in the absence of a major recession is likely to be gradual, and could occur over a 5-10 year period with much of the fall simply being caused by stagnating house prices in the face of inflation so that most of the fall does not occur in nominal terms.
Currently house prices are being pushed up by the influx of new arrivals (over 1 milliion since the 2006 census - versus a 1 million population gain taking 5 years). Also the State government charges and planning constraints are also pushing up prices.
ASX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)