Joe Hockey has weighed into the debate as to whether Australia is on the cusp of a housing collapse and has made comments in the USA that, ‘Australia is a long way from a Housing Bubble’.
On a recent trip to the USA treasurer Joe Hockey has been forced to react to comments regarding Australia’s housing market in an attempt to placate foreign investors. Hockey was questioned in an interview on US television news syndicate CNBC if he had concerns about a bubble that would burst and cause a housing crash similar to the one that tore through America and he responded that, “Australia is a long way from a housing bubble, and commentators overseas did not understand the Australian housing market, which has recorded strong price growth this year in response to low interest rates.”
As Hockey does his best to downplay housing bubble speculation numerous commentators in Australia have predicted an imminent housing bubble with nationwide house prices up 5.8 per cent over the year to mid-September, with Sydney prices up 8.2 per cent. However Hockey has attributed the recent surge in prices to high immigration and a lack of new homes being built and commented that, “rising house prices in Australia help to make some of the more marginal new housing developments affordable, realistic and deliverable.”