Australia’s housing bubble smashes all records
Macro Business12:20 am on March 22, 2017
Leith van Onselen
The ABS yesterday released its property price data for the December quarter, which valued Australia’s dwelling stock owned by households at a record $6.11 trillion dollars.
As shown below, the total value of Australia’s dwelling stock was an all-time high 7.5 times incomes as at December 2016, up from 7.1 times incomes a year prior:
Similarly, the ratio of dwelling values against Australian GDP hit a record 3.6 times as at December 2016, up from 3.5 times GDP a year prior:
When divided by Australia’s population, Australian housing was worth a record $252,000 per man, women and child:
Australia’s house prices are also showing a record divergence from rents:
In fact, since Australian house values bottomed in September 2012, prices have risen by 34% in real terms versus only a 1% increase in...