Shrinkflation hits Victorian property

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By Leith van Onselen

The Victorian State Government’s transfers and mortgages data for December shows that the state’s housing market has been hit by ‘shrinkflation’: the perverse situation whereby transaction volumes are falling at the same time as prices are rising strongly.

The below charts shows that annual transfer volumes peaked in June 2016 and have since fallen by 5%:

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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.