The attached note takes a look at the outlook for the Australian residential property market.
The key points are as follows:
- The Australian housing market remains far more complicated than optimists & doomsters portray it to be.
- Yes, it’s expensive and heavily indebted but talk of mortgage stress is overstated & it’s been undersupplied.
- The combination of rate cuts, the election and a modest regulatory relaxation have helped turn property prices back up, but the upswing is likely to be constrained.