“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

The housing market has a pervasive impact on the Australian economy. It is the popular topic of any number of conversations around barbeques and dinner tables. It generates reams of newspaper stories and reality TV shows. You could be forgiven for thinking that the housing market is the Australian economy.[1] That clearly is not the case. But at the same time, developments in the housing market, both the established market and housing construction, have a broader impact than the simple numbers would suggest

https://www.rba.gov.au/speeches/2019/sp-dg-2019-10-17.html