This website provides real-time bubble indicators for housing markets in the eight Australian capital cities and primary New Zealand regions. These indicators provide a direct quantitative measure of the extent of housing fever in these major metropolitan areas. The measures are benchmarked against housing and macroeconomic fundamentals so that they provide a statistical mechanism for assessing the existence and the degree of speculative behaviour in these housing markets.
The markets considered are as follows.
The price-to-rent ratios in most Australian capital cities appear to have stabilized over the second quarter with the exception of Sydney and Melbourne. Melbourne’s housing market continues its downward trend and the Sydney market reversed its downward course and is now heading upwards. Analysis of housing market fundamentals and sentiment reveals that the non-fundamental component
In the first quarter of 2023, the price-to-rent ratios in most Australian capital cities continued their downward momentum, with the exception of Canberra, Perth, and Darwin: notably, Sydney and Melbourne have reached a similar level although one that is still well above their 2020 levels; Canberra, Adelaide, and Brisbane form another group, with ratios well
Downward momentum of the price-to-rent ratios continued during the current quarter in the Sydney, Brisbane, Adelaide and Perth housing markets. For other cities, like Melbourne, Darwin and Canberra, the price-to-rent ratio either increased slightly or stayed at a similar level. The 2020-2022 housing bubble involved six capital cities (Sydney, Melbourne, Brisbane, Perth, Hobart and Canberra).
This project is supported by the Australian Research Council under Project No. DP190102049.