OECD warns that Australian real estate risks contraction – Editor
Australia’s property markets are at risk of a “sharp correction” according to the Organisation for Economic Cooperation and Development.
An ABC News report by Elysse Morgan on 4th June 2016  has revealed that Australia’s property markets are at risk of a “sharp correction”, according to a recent report on Australia by the OECD (Organisation for Economic Cooperation and Development):
” continuing property market momentum adds to the risk of a sharp correction ”
This warning – of the risk that house prices will suffer a big fall – echoes concerns raised by Federal Treasury secretary John Fraser this week that Sydney is “unequivocally” in a bubble.
The OECD warned the RBA to not cut interest rates again, saying “monetary policy firepower” should be held in reserve given the uncertainties about the outlook and possible inflationary effects on house and other asset prices.
Source: ABC News, 4 June 2016 http://www.abc.net.au/news/2015-06-04/australian-real-estate-at-risk-of-sharp-falls-oecd/6521150
Elysse Morgan is an Australian journalist, and is finance reporter for the ABC.