Australia is not facing a housing bubble - in fact, when it comes to prices we get more than what we're paying for, says BT Financial Group's Chief Economist Chris Caton. The myth remains that the ratio of house prices to income is higher in Australia than anywhere else in the developed world. This isn't true, although we are clearly not cheap by world standards. But perhaps it shouldn't surprise if we were the most expensive; Australian houses, measured in terms of floor space per capita, are the biggest in the world. Click here to find out where the Reserve Bank weighs in (VIEW LINK)
Perhaps a correlation between perceived quality of life in Australia and the additional floor space in our homes?
This is true - though it would be worth pointing out that our massive homes are filled with spare bedrooms - probably 6 million in total across the nation. In any other industry we'd refer to that as excess capacity, and makes one wonder about the so-called 'housing shortage'. But great graph on the square metres.
The case could also be made that around the world it's more expensive to live in coastal areas, and we almost all do that.
Perhaps there would also be a correlation between perceived quality of life in Australia and the additional floor space in our homes. Are people willing to pay a premium or at least top dollar for an intangible?