Fitch: Australia's housing prices are high, but not to collapse

Updated on 23 January 2014, 17:28 AEST
Compiler: Fan Huiqiang, Editor: Penning

A well-known international rating company said that Australia’s housing prices are high, but they do not necessarily mean that they are overvalued, and predict that housing prices will rise lower than last year’s levels.

1 Fitch: Australian house prices are high but not likely to collapse (Credit: ABC)

Fitch Ratings' Global Mortgage and Housing Market Outlook surveyed the real estate situation in 17 countries. According to the report, Australia ranks among the four worst countries in terms of three key indexes representing the affordability of buying a house.

Ben Newey, an analyst at Fitch Ratings, said that although the report shows that housing prices in various Australian cities are higher than other countries in terms of the ratio of housing prices to income, this does not mean that Australian housing prices are overvalued. .

Newey told ABC that he did not think Australia's housing prices were overvalued based on the affordability of home purchases in the last ten years. However, he believes that Australian house prices are unlikely to grow at the same rate last year.

The report also shows that among the 17 countries surveyed, rents and housing prices in many countries are not only significantly higher than 1997 levels, but also higher than long-term averages. At the same time, the ratio of housing prices to incomes in all these countries is also high. Therefore, a more rational prediction is that housing prices will be subject to certain restrictions in the next ten years.