Australia Must Fix Its 'Spectacular Housing Bubble': Citi
- Lender’s chief economist Buiter says cooling measures needed
- Data due Thursday expected to show signs of housing slowdown
Residential buildings stand in the suburb of McMahons Point in Sydney, Australia, on Thursday, Aug. 11, 2016. Australia's central bank said inflation would remain low and the economy could grow faster, while house-price concerns had cooled, in explaining its decision to cut interest rates for the second time in four months.
Photographer: Brendon Thorne/BloombergAustralia is experiencing a “spectacular housing bubble” which needs to be addressed with tougher regulatory measures, said Willem Buiter, Citigroup Inc.’s chief economist.
A shortage of housing, coupled with record-low interest rates, has made Sydney the world’s second-most expensive property market. The city’s home prices jumped 16 percent in the 12 months through April, helping stoke record household debt and putting ownership increasingly beyond the reach of many.