Macro Investing: A property price bubble?

Australia missed the US and European property market crashes. Has this left Aussie housing overpriced? Macro’s Leith van Onselen investigates.

The inexorable rise of Australian home prices over the past two decades has led to widespread debate about whether Australian housing is overvalued.

Surveys by The Economist and Demographia claim that Australian homes are amongst the most expensive in the English-speaking world – the former based on a price-to-rents methodology, the latter on house prices relative to incomes.

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