The Australian property bubble is speculation that real estate prices in Australia may (currently) be valued at more than some people think they are worth. This may be a real estate bubble. The bubble has been driven mostly by housing within Australia becoming investment tools instead of necessities. This was driven by the powerful real estate lobby, who heavily lobbied Paul Keating, John Howard and multiple other Australian prime ministers. The Australian property market is a significant bubble. It is arguably the biggest property bubble in the world and with Australia's minute population, it is set to burst in spectacular style as taxation changes are set to be put in. These alterations will include the elimination of negative gearing and returning to previous levels of Capital Gains Tax or CGT (the key driver for the doubling of house prices within a span of 4 years as investors flocked into the market).
A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterised by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.
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Famous quotes containing the words australian, property and/or bubble:
“Beyond the horizon, or even the knowledge, of the cities along the coast, a great, creative impulse is at work—the only thing, after all, that gives this continent meaning and a guarantee of the future. Every Australian ought to climb up here, once in a way, and glimpse the various, manifold life of which he is a part.”
—Vance Palmer (1885–1959)
“In the Greek cities, it was reckoned profane, that any person should pretend a property in a work of art, which belonged to all who could behold it.”
—Ralph Waldo Emerson (1803–1882)
“If the bubble reputation can be obtained only at the cannon’s mouth, I am willing to go there for it, provided the cannon is empty.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)