http://www.bloomberg.com/news/2011-06-30/australia-home-price-drop-pits-local-bulls-versus-foreign-bears.html
The nation’s four biggest lenders, which account for about 87 percent of outstanding mortgages, are forecasting prices will be underpinned by a housing shortage, population growth and an economy boasting near full-employment. Overseas investors say high debt, unaffordable homes and rising interest rates could cause home prices to tumble as much as 40 percent.
The nation of 22.5 million has the most unaffordable housing in the English-speaking world, Illinois-based consulting company Demographia said in January, with the median Australian home costing 6.1 times gross annual household income, compared with 3 times in the U.S. Debt in Australia is equal to 155 percent of household disposable income, according to central bank data, compared with 133 percent in the U.S. before the crisis.
Jeremy Grantham, chief investment strategist at Boston-based Grantham Mayo Van Otterloo & Co., last year called the Australian housing market a “time bomb” set to blow when rates climb. Grantham declined to comment for this article.
FX Concepts’ Taylor said Australia’s dependence on China, its biggest trading partner accounting for about 25 percent of exports, may soon be a drag, rather than boost, as Beijing attempts to cool the economy.
The nation’s four biggest lenders, which account for about 87 percent of outstanding mortgages, are forecasting prices will be underpinned by a housing shortage, population growth and an economy boasting near full-employment. Overseas investors say high debt, unaffordable homes and rising interest rates could cause home prices to tumble as much as 40 percent.
The nation of 22.5 million has the most unaffordable housing in the English-speaking world, Illinois-based consulting company Demographia said in January, with the median Australian home costing 6.1 times gross annual household income, compared with 3 times in the U.S. Debt in Australia is equal to 155 percent of household disposable income, according to central bank data, compared with 133 percent in the U.S. before the crisis.
Jeremy Grantham, chief investment strategist at Boston-based Grantham Mayo Van Otterloo & Co., last year called the Australian housing market a “time bomb” set to blow when rates climb. Grantham declined to comment for this article.
FX Concepts’ Taylor said Australia’s dependence on China, its biggest trading partner accounting for about 25 percent of exports, may soon be a drag, rather than boost, as Beijing attempts to cool the economy.
No comments:
Post a Comment