usually worse pollution than city ironically, unless you're really isolated (a lot of these villages have terrible wood burning chimneys, usually some dirty factories etc., smell from farming/primitive animal styes in the area and zero regard for ecology/enforcement of environmental standards) schools/kindergarten and socialisation for your children (if you have them of course) I'm from Croatia and what you're describing only checks out if you live in rural/undesirable area IMO. He said that cyclical upswing would likely continue into next year, with his own forecasts showing price growth of another 15 per cent by the end of next year.Where in southeast Europe are we talking about here ? He said the third (and current) long-term boom began in the mid-1990s and it had taken real property prices from well below trend to well above trend. He says real property price growth has averaged around 3 per cent a year in Australia over the last hundred years and there have been three major long-term booms (highlighted by the green arrows in the image below) and two major long-term busts or weak periods in that time. However, economist Shane Oliver from AMP Capital has taken a much broader look at Australia's property prices.

Last month, APRA's chair Wayne Byres said the growth in property prices and mortgage debt in recent months was no cause for 'immediate alarm.' What about the longer term? 'In fact, proposed changes to responsible lending rules may mean that lending becomes a little less restrictive in the near term.' 'Based on the current trends in these metrics, it's our view that we are unlikely to see any macroprudential policies put into place in 2021,' Ms Clifton wrote. That meant they were focusing on key metrics such as the share of investor lending, interest-only lending and high loan-to-valuation ratios, she said.Īnd none of those metrics were a concern at the moment. The economics teams of Australia's major banks have been monitoring property markets around the country.ĪNZ economist Daniel Gradwell said Melbourne's housing prices had finally recovered their declines from last year and the pace of price growth was slowly catching up with other cities. 'The longer-term bull market, that has seen above trend growth in property prices since the mid-1990s, may be close to an end,' Dr Shane Oliver from AMP Capital said. However, he said much depends on the future level of immigration, the persistence of the working-from-home phenomenon and the level of interest rates in coming years. Without regulatory intervention, most agree property prices will keep rising through 2021, probably by 10 per cent or more.īut looking further ahead, one leading analyst suggests Australia's multi-decade housing upswing could be nearing its end and that prices could ease through the decade once this short-term price surge has ended.

Despite concerns about the pace of property price growth in Australia, regulators may not step in this year, analysts have warned.

Australia housing bubble 2021