Australia property parasite devours its host

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By Leith van Onselen

MB has long argued that the Australian economy is overly reliant (and exposed) to the property market, which poses the clear and present danger that any significant downturn in property values and construction activity could have detrimental ramifications for employment and growth.

This over-reliance on property is broadly encapsulated by the below charts showing the surge in property values to almost 4-times Australia’s GDP:

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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.