Property bubble talk is just talk: analyst
Property analyst Michael Matusik says property prices are lifting from a low base in response to low interest rates, and other factors, rather than creating a property bubble.
The comments were made in News.com.au in response to similar comments from Commsec’s chief economist Craig James.
Mr Matusik said one of the concerns about the property bubble debate was the way property prices were measured, and their influence on media and average house price statistics.
He said new development or redevelopment often caused median and mean prices to rise without affecting resale home values in the same areas.
He said the situation was common around major infrastructure projects, which also affected rental figures.
Mr Matusik gave flood affected suburbs in Brisbane as an example where renovated homes were selling at higher prices compared to old homes, because the former was redeveloped and the latter remained unchanged.
He said the Australian economy appeared to be lifting, with consumers spending again, but that did not necessarily mean there was a property bubble.