Two months ago, Treasurer Josh Frydenberg boasted to the AFR Property Summit that the rebound in property prices would help to boost Australia’s GDP:
Treasury estimates that a 10 per cent increase in house prices could result in a corresponding lift to GDP of about half a per cent.
Similarly, the RBA has said that a 10 per cent increase in household wealth is expected to increase the level of consumer spending by up to 1½ per cent.
