‘Bubbling Over’ – The End of Australia’s $2 Trillion Housing Party
A young academic has produced a fresh review of the economic fundamentals behind The Great Australian Land Bubble, and concluded “a collapse in property prices appears unavoidable”.
‘Bubbling Over’ examines the history of house prices in Australia from 1880 to 2011, including a critical analysis of the arguments offered by the mainstream against the existence of a bubble and compares these to robust and tangible statistics.
“Failing to recognise a $2 trillion bubble when Australia’s GDP is $1.35 trillion seriously undermines the standing and credibility of many of Australia’s so-called experts,” Prosper Australia Campaign Manager David Collyer said today.
“The conclusions in ‘Bubbling Over’ are very ugly: by any objective economic measure – house price to rent, household debt to assets, median house price to income multiple, mortgage debt to GDP, household debt to disposable income – residential property is ‘severely overvalued’.”
“Philip Soos demolishes the myths force-fed to aspiring homebuyers by salaried real estate types, financiers and the economists who have denied or missed this land bubble altogether,” Collyer said.
“Prosper is proud to release this document. It adds evidence and substance to the current one-sided debate. It lays out in clear terms with unshakable logic why the only support to current property prices is real estate industry ‘spin’.
Prosper’s Don’t Buy Now! Home Buyers Strike campaign has been urging young and innocent first home buyers to stand aside from the residential property market as prices have diverged so far from fundamentals that anyone buying now faces a lifetime of debt slavery.
“We say price falls are both imminent and unstoppable. Philip Soos explains why,” Collyer concluded. “This is essential reading for every citizen thinking of buying.”
About Philip Soos: Philip Soos is a Masters research student and researcher employed at Deakin University, working towards a doctorate in political economy. He specializes in the comparative analysis of domestic and international pharmaceutical research and development systems. Philip also holds MBA and IT degrees from RMIT University and Swinburne University of Technology, respectively. Email: firstname.lastname@example.org
Listen to Philip Soos on Renegade Economists 3CR 855AM 5.30 pm 20 July or podcast via iTunes