The boom in Australian home prices and building over the past decade or so was primarily driven by lower real interest rates, while strong migration tended to lift rents, according to a study paper from the country’s central bank.The research model from Reserve Bank of Australia (RBA) economists Trent Saunders and Peter Tulip also suggested that a further reduction in real rates could revive home prices after recent weakness.At their peak, prices in Sydney more than doubled between 2008 and…
Source : South China Morning Post
Read more…Australia’s record high housing prices were driven by low interest rates, central bank study shows
