It has taken a very long time but someone has finally admitted Australia is experiencing a housing bubble. And guess what? The sky hasn’t fallen in!
What a relief! I’m relieved for two reasons. First, that the sky hasn’t falling in….but I didn’t think it would. Second that someone considered a sensible economic authority, Treasury Security John Fraser, has been brave enough to say the words out loud.
Hopefully saying it makes it less scary. The word ‘bubble’ has always been considered ominous in property but it doesn’t have to be. It really shouldn’t be, especially for the Highlands property market.
The problem is people automatically consider a ‘bubble’ means inflated prices and that inevitably the bubble will suddenly burst, dropping prices drastically. In relation to the current property market in the Southern Highlands I absolutely disagree with that.
The market here is hot and it has been for some time. That’s undeniable and our offices in Bowral, Mittagong and Robertson continue to be incredibly busy fielding calls from prospective buyers. We need more listings to meet demand.
But as I have said many times over recent months the strong demand in this area has still been in line with true market value for both residential and rural property. Buyers are there and they are paying good prices for property but they’re not being ridiculous.
The Highlands has a bubble of property demand not overblown prices and that won’t automatically pop. Of course there is potential for it to ease and for prices to soften, but right now the continuing low interest rate environment is the main driver of demand and that isn’t going to change anytime soon.
So if you are looking at property in the Highlands please don’t be scared of the bubble.