Sydney Property Price Bubble

Hi Team,

Sydney property prices took-off in the early 2000's. By 2012 things were supposed to slow down but the prices have just kept accelerating. The price to median income ratio is 12.9, the second highest in the world. For context, NYC is at 5.7.

These levels seem crazy. I can't help but thinking there will be a downward spiral. The papers are saying 25% of Australian house owners are 1-month away from not being able to repay their mortgages. Interest rates have been low for a long time. Any increases might tip us over the edge. Australian banks have huge exposure to the housing market.

Is anyone familiar with this situation? I'd be keen to hear thoughts on the Australian housing sector.


  • edited March 22
    I recommend looking at what the Australian Economist Steve Keen has to say on this, he's been warning about this for a while now;

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