Australia’s property price boom is an economic dud

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.

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