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.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
east victoria park
Get help with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out