Australian housing & household sector update

ANZ bank has posted their slideshow presentation on Australian residential real estate. The ANZ analysts’ position is that “Australian, US and UK residential property market fundamentals have very little in common…”

The rising household debt to income, and housing prices vs. rental rates look bubbly to us. Maybe this time “really is different” at least in Australia. OTOH, a new investor is sure to be smashed if the China boom gets pricked.

Australia non-performing loans are low

Australia house prices vs US + UK

The most important characteristic of the Australian market is probably the demographics — population has grown faster than housing supply: