Abstract
Purpose- The purpose of this paper is to provide an explanation as to why Australian house prices did not succumb to a similar fate as the US and UK residential property market in the aftermath of the global financial crisis. The research details several reasons to explain why Australia's house prices were unlikely to succumb to the price falls experienced in the US, UK and Europe. Design/methodology/approach- The method used in this paper involves analysis of historical and current data to provide a comparative analysis of the determinants of house prices in Australia and the US, including an analysis of housing affordability. Findings-From the evidence presented, the factors, which played the most significant role in creating the conditions for the US house bubble, were not evident in the Australian housing market. Interestingly, the constrained level of supply of new housing in the major cities of Melbourne and Sydney appear to have impacted upon the demand.
| Original language | English |
|---|---|
| Pages (from-to) | 11-22 |
| Number of pages | 12 |
| Journal | Journal of New Business Ideas & Trends |
| Volume | 9 |
| Issue number | 2 |
| Publication status | Published - 2011 |