I personally think the Demographia method is way too simplistic and flawed...resulting in some places in North Queensland being the most expensive in the world, just because of a high retiree population. Plain wrong logically.
Seems the RBA have done a more realistic comparison to get like for like with overseas countries. Even NZ doesn't have compulsory super. It is a form of savings from real wages and salaries, even though its not disposable.
Saw a post the other day which was quoting Sydney median prices alongside Australian median wages - hello! and claiming the usually omg, 8-9x
If people really can't afford our current or new stock, then the market will talk with drops. Demographia and the "overseas' experts have been using these flawed measures for a decade +
I would trust the RP Data/ Rismark index to guide me on what people can or can't afford to pay, combined with the mortgage default rate.
Funny thing is our saving rate has gone from 2-3% to over 10% in a short period.
how is that possible in the most "expensive" market in the world.
