Housing bubble fears unfounded: CBA

By |

Concerns that Australia is facing a housing bubble are based on “superficial or incomplete analysis”, according to the CBA.

Bloomberg reports that the lender is preparing slides for upcoming meetings with overseas investors that indicate Australia’s market is every bit as affordable as comparable countries.

“Taking into account geographic differences, the ratio of house price to income in Australia is not that much different to most other comparable countries,” the bank said. “Population growth and excess demand relative to supply has been a key driver of Australian house price appreciation -- these factors are unlikely to reverse in the near term.”

The CBA cited the “strong fundamentals” of the Australian economy, an undersupply of housing and population growth of about 2% a year as preventing against a sudden collapse.

Do you have more than $120k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : east victoria park , redcliffe , rockville , dulwich hill , coburg north

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here