With Australia’s economic growth stumbling at its slowest pace since the GFC; our two largest export partners, China and Japan, decelerating and contracting respectively; and Coronavirus now going global, Australia’s resurgent residential property market is starting to look the like the ‘unburstable bubble’.
We asked Tim Hannon, Co-CIO from Lucerne Investment Partners for his take when he was in the Melbourne studio recently. Tim cited a few potential causes for the current fillip in housing and restated his view that credit growth is the long-term driver investors should watch:
“All the signals are there for the housing market to continue to decline. But what we need to see is negative credit growth… and we are not there yet”.
Watch now for his full view on this critical $6 trillion market central to Australia’s economic prosperity.
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