Economic growth propels profit growth

There is currently a wide divergence in the Australian property market – Sydney and Melbourne are performing reasonably well while Perth and Darwin are in negative territory and the other capital cities sit somewhere in-between. We see the Brisbane property market recovering and starting to follow in the footsteps of Sydney and Melbourne. If you look at the recent monthly figures that have come out of the private sector data providers, overall the market in Australia has picked up around March – May, albeit it’s not as strong as it was 12 months ago. A property crash is still unlikely, with any weakness emerging only likely to cause a 5-10% pullback. Apartments are most at risk given the recent surge in supply in some areas.In this video, Shane Oliver looks at the drivers behind Australia’s economic growth figures, as well as the diversity in housing market figures across the country and the global sharemarket performance.