Australia ranks fourth on global property risk list. Will we dodge it?
Australia is one of the most likely countries in the world to clock property price falls, a new ranking shows, after prices boomed over the past two years.
Property prices are high compared to rents and incomes, the Bloomberg Economics research found, although local experts caution prices will not necessarily drop far enough to get back in line with fundamentals.
Australia ranked fourth in the OECD for the risk of a property price correction, behind New Zealand in first place and just ahead of Canada in fifth, two other countries where property markets have been hot for years.
Central banks around the world, including Australia, cut interest rates to support economies during the pandemic, allowing buyers to borrow more and pushing property prices higher.
As economies recover, interest rates are …
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