Three decades of surging home prices have fostered an industry built on property speculation in Australia. But Shane Oliver, chief economist at AMP says the "super cycle" is ending. The combination of a rising long-term trend in mortgage rates after a thirty-year down trend, record poor affordability, the removal of nearly all property tax concessions and a political shift towards lower immigration may mean the upswing in home prices may be close to over, he says. A housing shortage remains the key sticking point though with building approvals up but continuing to run well below the government's target of 240,000 new homes a year, he adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
Dow Jones Newswires
Australia's 30-Year Property Super Cycle Is Ending — Market Talk
Three decades of surging home prices have fostered an industry built on property speculation in Australia. But Shane Oliver, chief economist at AMP says the "super cycle" is ending. The combination of a rising long-term trend in mortgage rates after a thirty-year down trend, record poor affordabili…