Via the AFR:
Unsustainably high housing prices put Australia’s economy “at the precipice” of a once-in-a-century bust if global borrowing costs rise more than 150 basis points, warns Industry Super Australia, the peak body for industry super funds.
Housing prices in Melbourne and Sydney rose to nearly seven times average weekly earnings last year from four times in 2000 even as real bond yields – a proxy for lending costs – more than halved, and a country of highly indebted households would suffer if interest rates rose, ISA’s chief economist Stephen Anthony said.
