Why Australian property won't collapse

Australian housing is expensive relative to incomes and rents. And household debt ratios are high. So yes, there is a risk of a sharp drop in property prices at some point. However, this is unlikely unless we see much higher interest rates or a surge in unemployment in the context of a recession. The foresight of the Reserve Bank and what has so far been a successful rebalancing of the economy in the face of the mining downturn mean that both of these scenarios seem unlikely at present. However, there is always a cycle – we’re going to see a 5-10% fall in property prices at some point in the next few years much like we did around the time of the global financial crisis and around 2012. But at this stage, it’s unlikely that we’re going to see a property crash. Read the article: (VIEW LINK) or watch the video below.