Goldman Sachs: Australian Property Bubble is Nearing an End

IMF Downgrades Australian Economic Outlook
April 15, 2015
Pressure off RBA as Australian Unemployment Drops to 6.1%
April 16, 2015
Show all

Goldman Sachs: Australian Property Bubble is Nearing an End

Australia’s property prices have looked bubbly for a while, but the surge is likely to hit a wall soon amid a combination of few births, high mortality and sparse migration, Goldman Sachs said.

House prices have appreciated 23 percent over the past two-and-a-half years and are forecast to increase by 8 percent this year, driven in part by Chinese buyers seeking investment properties, HSBC estimated in February.

While the country’s population growth over the past decade had been among the most rapid in developed markets, that’s changing, Goldman said.  Slowing income growth and women delaying having children have caused the birth rate to fall 3 percent on-year currently after a spike from 2005-2008, Goldman noted.

CNBC

Stuart McPhee
Stuart McPhee

Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.