Inflated value of residential property in Australia may lead to the market crisis and social protests, the Guardian writes citing economists’ forecast.
According to the latest data provided by BIS Oxford Economics, Sydney residents spent 42% of their average income on mortgage payments. In Melbourne, the figure is 37%, while in Brisbane 23% of the city’s residents income comes to paying mortgages. At the same time, rents for housing often exceeds the payment for the property purchased on credit.
Real estate analyst Michael Matusik claims that housing in Sydney will be really affordable, in case prices for it will fall by 47%. The average property prices in the country are overvalued by 37%, he believes.
