Head of Investment Strategy and Chief Economist.
BOOMING Australian residential property market & it’s implications for interest rates
The key points are as follows:
> A housing recovery has been a necessary aspect of rebalancing the economy through the mining bust.
> While Australian property prices are overvalued, this should not be a constraint on the RBA. Expect another rate cut in May with the strong possibility of more to follow.
> The medium term return outlook for Australian residential property is likely to be constrained by a combination of low rental yields and overvalued home prices.