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Monday, 25 November 2013 11:37

The Bubble Muddle

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On the 4th of November 2013 the Australian Bureau of Statistics (ABS) released the price change index for Australia’s eight capital cities to show that weighted average prices had increased by 1.9% in September 2013 quarter. 

The ABS chart below shows that recent increases have followed a period of decreases, statistics that hardly accords with the bubble talk of many commentators, which raises the question of why such commentary persists when Australia’s property market of the past decade appears to have responded to policy intentions set by the Reserve Bank of Australia (RBA) and the Australian Regulatory and Prudential Authority (APRA). 

The ebbs and rises in Australian property prices, with an overall tendency to increase steadily overtime, is a sign of a healthy market and “bubble talk” is a story that sells.

Hopefully, such headlines promote caution amongst buyers, encourage proper due diligence, a healthier property market and better investment decisions.

Credit Connect Capital’s investment process supports you in your due diligence and investment decisions.  

 

 

Last modified on Monday, 25 November 2013 11:52

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