Australian Housing 'Bubble' Fears Overblown, HSBC Economist Says
- Paul Bloxham says lack of supply helps to explain price gains
- Nation can avoid repeat of U.S., Spanish slumps: Bloxham
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Soaring home prices in Australia’s biggest cities are driven by strong demand and a lack of supply, rather than indicating a “bubble,” according to HSBC Holdings Plc’s local Chief Economist Paul Bloxham.
“At a national level, a key reason for rising housing prices has been housing under-supply,” Bloxham wrote in a research note on Thursday. “This also suggests that a significant fall in Australian housing prices, as occurred in the U.S. and Spain during the global financial crisis, is unlikely.”