{"id":18178,"date":"2016-02-24T12:15:53","date_gmt":"2016-02-24T17:15:53","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18178"},"modified":"2016-02-24T12:15:53","modified_gmt":"2016-02-24T17:15:53","slug":"australias-housing-bubble-in-the-grip-of-insanity","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18178","title":{"rendered":"Australia\u2019s Housing Bubble: In the Grip of Insanity"},"content":{"rendered":"
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Australia\u2019s Housing Bubble: In the Grip of Insanity\u00a0<\/a><\/h2>\n<\/div>\n
Perverse Incentives\u00a0<\/strong><\/div>\n
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We haven\u2019t written about Australia\u2019s residential real estate bubble for some time (readers may want to check out last year\u2019s post \u201cAustralia\u2019s Bubble Trouble<\/a>\u201d, which contains numerous relevant charts and data).<\/p>\n

\"PropertyProperty auction in Sidney<\/p>\n

Our friend Jonathan Tepper of Variant Perception has recently visited Australia for a fact-finding tour (more on this further below), so we felt we might as well take the opportunity to write an update on the topic.<\/p>\n

\"1-Sydney<\/a>House prices in Sidney vs. the administered interest rate of the Reserve Bank of Australia. As you will see below, interest rates aren\u2019t the only driver of the bubble \u2013 click to enlarge.<\/p>\n

Our reader D.S., who has moved to Australia five years ago, has provided us with a number of very interesting observations on the Australian housing market late last year, which we are sharing below. As D.S. notes, there are a number of interesting wrinkles specific to Australia\u2019s real estate market, which outsiders are generally not likely to be aware of. We have highlighted a few passages in his report below which we think are especially important:<\/p>\n

\u201cThe housing bubble in Australia has been talked about so extensively and has lasted so long without any harm coming to it that people here have pretty much dismissed the very possibility of a crash \u2013 including, it has to be said, the chances of a recession.<\/em><\/strong>\u00a0The reason I was motivated to write this note is because there are some (I believe) unique dynamics at play in this housing market, which aren\u2019t necessarily apparent to the outsider \u2013 at least, I was never aware of them until I moved here.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Australia\u2019s Housing Bubble: In the Grip of Insanity\u00a0 Perverse Incentives\u00a0 We haven\u2019t written about Australia\u2019s residential real estate bubble for some time (readers may want to check out last year\u2019s post \u201cAustralia\u2019s Bubble Trouble\u201d, which contains numerous relevant charts and data). Property auction in Sidney Our friend Jonathan Tepper of Variant Perception has recently visited […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,41,406,2340,12581,6170],"class_list":["post-18178","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-australia","tag-housing-bubble","tag-housing-market","tag-housing-market-crash","tag-pater-tenebrarum"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18178"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18178\/revisions"}],"predecessor-version":[{"id":18179,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18178\/revisions\/18179"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}