We’ve seen this before from Harry Dent – back in 2012 Harry Dent was saying that the Australian real estate market is a bubble ready to burst. Now he’s back in Australia to speak at seminars and to promote his book, “The Demographic Cliff”. He says that house prices are unsustainable and will fall by at least 27 per cent in Sydney and Melbourne over the next several years. He has previously said that Brisbane is the most overvalued city in the world.
So what is Harry Dent saying now?
“I am saying that China has the biggest [bubble] and that is going to trigger [the bursting of] your bubble. Your real estate is so high it has to come down in the next few years.”
According to the Property Observer he said:
“I see it like a popcorn popper, different markets are bursting at different times … but all of real estate in coastal cities all around the world is greatly overvalued and they’re all going to burst whether it be 30% or 40% … or 90% in the worst case.”
Here’s Harry in a recent interview in Australia:
Harry Dent seems to be pretty confident in himself, but not everyone agrees with his assessment of the Australian property market. Here’s an article by Michael Yardney writing in Smart Company:
Are we in a bubble?
The simple answer is NO and property values are not about to collapse!
Sure house prices are high compared to many parts of the world, but rising prices per se don’t cause a bubble.
What is needed is for the rises to be fuelled by increased borrowings – leverage – which makes the banking system fragile and unstable.
Interestingly, Dent made similar predictions in 2011, 2012, and 2013 as did The Economist and Demographia.
On the other hand the RBA and chief economists at all of Australia’s major bank, who have proved more accurate at predicting the swings and roundabouts of the Australian economy, believe our property market is fairly valued and not in bubble territory.
– Smart Company – “Harry Dent says the Australian property bubble will burst – is he right?”
What do you think of Harry Dent’s predictions for the Australian real estate market?
Are Australian property prices unsustainable? Or , as others suggest, our low interest rates, low unemployment, and an undersupply of properties should keep prices in check? I’d love to hear what you think, so please add your comments below, or share this post on Facebook.
We are totally not in a bubble ready to burst! Bris property is going off and will continue to do so for quite some time in my opinion. Just look at all the residential building in and around the CBD? Happy days for Brisbane 🙂 Leisa
We are definitely in a bubble. We moved to Melbourne four years ago. There is no way we could afford to buy a home. Our friends can’t understand it because we earn so much more than they do and they all own homes as they bought years ago. I think if the people who currently live in a suburb couldn’t afford to buy their own homes at today’s prices there is something wrong.
My family and I moved to Melbourne Two years ago. We migrated from the United States, living in california for almost 30 years.
In my family and my educated opinions, Australia is definitely in the midst of a huge realestate bubble, almost exactly like the bubble that the United States experienced and is somewhat still experiencing. I have no doubt that a huge realestate adjustment/collapse is just around the corner.
I don’t wish the heartache on anyone, but as far as the economy is concerned, it is a nessicary evil to keep everything in check. People will go through a lot of strife, but in the long run, it will keep everything in ballance, unlike it is now.
We still have a lot of family in California, and throughout the US, and when we talk with them, they all talk about how much it has made everything more affordable and easier to obtain for the average person.
Auckland real estate looks like in bubble too. It is perhaps 17 times of average income. Impossible for people to pay back mortgage. Chinese buyers will start pulling outsoon from Oz and NZ and that will be the end of the story. Get Real.