Economics
Be Prepared for a Housing Market Price Dive, OECD Warns Australia
- Risk of overshoot in house-price correction remains: report
- Authorities should prepare ‘contingency plans’ for collapse
Photographer: Brendon Thorne/Bloomberg
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Soft landings in housing markets are rare and Australia should be ready to respond to the risk of a significant price dive, the OECD said.
In its latest survey of Australia, the Paris-based group forecast economic growth of 2.9 percent next year, leading to a gradual pickup in wages and inflation. While it said the housing market’s cooling was so far orderly, it warned that high property prices and household debt were potential instabilities.