Property market a 'runaway train', but what of the ramifications?

30 Sep 2014 - Property concerns a 'non-conversation'

"The shadow minister for housing, Senator Jan McLucas, is calling on the Reserve Bank of Australia to engage in housing policy questions since she is convinced the current government is not interested in capping current housing industry market dynamics.

Speaking exclusively to Real Estate Business as she leaves Cairns to appear in the economics committee inquiry in the Senate on Thursday, Ms McLucas said she was worried about housing dynamics in Sydney and Melbourne and wanted to hear the Reserve Bank explain its solutions to the problem.

“The evidence around foreign investment into the residential market is conflicted because the evidence on one hand states purchases from Asia are pushing prices up and others say completely the opposite, non-one can say unequivacably,” Ms McLucas said.

“At the end of the day a number of factors are at play, and not just LOW INTEREST RATES. There is a massive undersupply of housing when compared to 10-year averages, not enough properties hitting the market and a spin-off of low interest rates, which is a benefit and gain for property investors.

“A lot of the problems are a non-conversation.”

The above is an extract from the article at: http://www.rebonline.com.au/breaking-news/8195-property-concerns-a-non-conversation? (Real Estate Business online, 2014)

Michelle Wang

Four C Realty