Residential property remains the asset class that most Australians aspire to own, both as owner occupiers and investors. After five years of astonishing growth in our largest cities, house prices are falling in some areas, with potential consequences for the wider economy.
NAB Markets’ Chief Economist Ivan Colhoun gives his views on the outlook for residential property in Australia, including:
- The drivers behind the growth in prices over the last five years
- Potential consequences of the ‘interest only cliff’, as investors have to start paying principal and interest on outstanding loans
- Impacts of the ‘wealth effect’ on the wider economy during price increases and falls
- Regional hot spots for higher vacancies and potential forced sales, and
- His preferred indicators for price trends over the next twelve months.
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