Decline predicted for Australian property market

on August 17 2011 9:24 PM
Melbourne's Financial District
Melbourne is most sought after commercial property location in Australia, report shows. Wikimedia Commons

One economist has predicted that the Australian property market could experience a significant decline.In an interview with the Herald Sun, Harry Dent - a US economist - described Australia's real estate sector as "the most over-valued in the western world".He stated: "I think prices will go back down to where they were in mid-2000, to where young families can start affording a house again - so that could prove a good thing."Mr Dent also said the property industry in Australia could see a crash similar to the one that occurred in Japan in the late 1980s.The most recent figures published in the RP Data - Rismark Home Value Index showed that house prices in the nation's state capital cities fell by an average of 0.2 per cent in June compared with May.Year-on-year, capital values were down by two per cent in June, although some cities such as Brisbane and Perth saw larger falls of 6.3 per cent and 4.7 per cent respectively.

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