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Investment in housing to replace mining boom

CommSec says house price growth shows this industry will be the main driver for the Australian economy.

Investment in Australian property is suspected to drive the economy as the mining boom of last year dies down.

This is according to the latest Commonwealth Securities (CommSec) Economic Insights report, which noted high increases in house prices across the country.

Chief economist for CommSec Craig James said: "The housing sector is the sector most likely to take the baton from mining and drive the economy forward over the coming year."

Indeed, many experts tipped property to be the main driver for the Australian economy, as rate cuts from the Reserve Bank of Australia (RBA) improve housing affordability and spur consumers into the market.

Additionally, construction is failing to keep pace with the population growth, meaning the amount of housing may not quite meet demands and sellers can push property prices higher.

In July, the RP Data-Rismark house price index showed property prices across Australia's capital cities rose by 1.6 per cent in July.

Posted by Ravin Chatlani

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