The global financial crisis (GFC) has set Australia up for a property boom, an economic expert has claimed.
Frank Gelber, chief economist for BIS Shrapnel, wrote in a piece in the Australian newspaper that the GFC merely manifested itself as a credit squeeze in Australia.
"To me, the GFC triggered a mid-cycle correction, setting us up for a boom, not only in mining but also in property, and particularly office property, markets," he claimed.
He said that the country may just be "rising from the ashes" but said that people need to think ahead as to how they are going to manage a mid-decade boom.
Mr Gelber claimed that the developed world will take time to recover but that Australia's problems will lie in capacity constraints, strong growth, inflation and rising interest rates.
Earlier this month, David Airey, president of the Real Estate Institute of Australia, claimed that the Australian property market would experience more growth if the Reserve Bank of Australia held back on increasing interest rates.
Posted by Steve Douglas
