Australia’s rapid rate of population growth doesn’t mean that house prices will always rise as population is not the most important determinant of demand over short periods of time. In any case, it’s how the extra demand from a growing population compares to the extra supply being built that’s important. And with additional supply set to outstrip additional demand for a few years yet, house prices may stagnate for a year or two before falling after official interest rates start to rise in late 2019.
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