The attached note takes a look at the outlook for the Australian residential property market.

The key points are as follows:

  • The Australian housing market remains far more complicated than optimists & doomsters portray it to be.
  • Yes, it’s expensive and heavily indebted but talk of mortgage stress is overstated & it’s been undersupplied.
  • The combination of rate cuts, the election and a modest regulatory relaxation have helped turn property prices back up, but the upswing is likely to be constrained.

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