NSW government still loving the Sydney bubble

Monday 27 April 2015

The spectacular investor-driven Sydney property bubble is a frequent theme this blog, with home prices there rising by around 35% since June 2013, according to RP Data (see next chart).

This rapid lift in housing prices has, of course, been driven by an unprecedented orgy of investor speculation, whose share of total finance commitments (excluding refinancings) hit a record 57.9% in the year to February, with no end in sight (see next chart).

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.