“Housing is the most important asset owned by the majority of Australian households. It is a large component of household wealth and serves a unique, dual role as an investment vehicle and a durable good from which consumption services are derived. With most mortgages and many small business loans secured against residential dwellings in Australia, housing also forms an important part of the collateral backing the financial sector’s balance sheet.” RBA Long-run Trends in Housing Prices Oct 15
The important fact to remember is that there is no one, single, ‘Australian Property Market’ – different states, suburbs and housing types travel at different speeds depending on the prevailing economic conditions, demographic changes, income levels, supply constraints, and government incentives to name just a few influences.
Housing and the Economy