Property: A Boom Or A Bubble?

Date: 06/07/2010

Fears of a property bubble may be over-stated: demand is strong for a number of reasons and shows no sign of a major downturn.

Strong growth in the property market continues, says Nicholas Don of Odyssey Financial, who puts funding packages together for investors and owner-occupiers alike. He says apartment sales in inner-suburban areas of most capital cities are leading the way, with property benefitting from a move away from the volatile sharemarket, and the recent ability for self-managed super funds to borrow to buy property. Immigration is boosting demand and developers are unable to increase supply quickly enough. The post-GFC dominance of the big four banks as sources of borrowed funds is beginning to recede: second and third-tier lenders are re-entering the lending market.