Australian property is not immune from a potential property bubble in the Asia-Pacific, a report has said.
The International Monetary Fund (IMF) document said there is "no evidence of systematic bubbles" in the near future but revealed concerns that if current economic conditions persist, asset bubbles could form.
"'As typically happens in housing bubbles 'many purchasers may have been buying in the expectation of price appreciation, rather than simply for dwelling purposes," the report stated.
Figures from the IMF show that Australia's property price-to-income ratio is one of the highest in the region, second only to India.
Recent interest rate rises in Australia, which have taken it to 4.25 per cent, are not set to dampen the Australian property market in Sydney and Melbourne, one project marketing group has said recently.
MLG told the Sydney Morning Herald that supply is restricted so the market will remain active.
Posted by Steve Douglas
The International Monetary Fund (IMF) document said there is "no evidence of systematic bubbles" in the near future but revealed concerns that if current economic conditions persist, asset bubbles could form.
"'As typically happens in housing bubbles 'many purchasers may have been buying in the expectation of price appreciation, rather than simply for dwelling purposes," the report stated.
Figures from the IMF show that Australia's property price-to-income ratio is one of the highest in the region, second only to India.
Recent interest rate rises in Australia, which have taken it to 4.25 per cent, are not set to dampen the Australian property market in Sydney and Melbourne, one project marketing group has said recently.
MLG told the Sydney Morning Herald that supply is restricted so the market will remain active.
Posted by Steve Douglas
