Page 11 - Advice Matters Magazine - FWP - Dec 24

How does our ‘property bubble’ compare to the rest of the world

Housing policy has been a big political issue for some time Putting our current residential property issues into a global
now and politicians are scrambling to tackle affordability. perspective provides some interesting insights.
Historically, Australians are a property loving people but Looking at the graphic below called Home Price Changes
with recent sharpest rise in interest rates in history the ranks the global housing ‘bubble’ markets and how they
affect on household finances is rapidly becoming a political performed in the last financial year. People living in Dubai
‘hot potato’. and Warsaw have experienced accelerated housing growth
performance, while Hong Kong and Paris saw their property
Despite what the politicians may want to tell us, there really
is no quick fix to solving the housing crisis. As has always markets deflate badly.
been the case, it is a matter supply and demand putting Australia’s biggest bubble property market has always been
pressure on the ability to build new homes and increasing Sydney which showed only a very small rise in value as the
land supply as well as reducing construction costs. big capital city markets slow.

11