The property bubble debate rages on as Chris Joye reiterates his concern that we should be panicking about the future

Tom McKay
Tom McKay Livewire

The property bubble debate rages on as Chris Joye reiterates his concern that we should be panicking about the future. Joye reiterates his view regarding the potential for an SMSF blowout, commenting that the impact of these superfunds on banking and the housing markets is bigger than most people realise. He estimates unmet housing demand in SMSF portfolios in the range of $150 billion to $450 billion. According to Joye, SMSFs had $507 billion in assets as at June with only $17.5 billion, or 3.5% invested in housing. Surveys, however, suggest SMSFs want to commit 30% of their savings to housing, which implies $152 billion for investment. An important threshold question here is whether all this SMSF purchasing power ends up in new housing supply or existing homes, says Joye. (VIEW LINK)

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