Housing Minister Clare O’Neil says a temporary downturn in house prices should not alarm Australians after a report by CBA said a price recovery would not occur until 2027.
“It’s clear that house prices are softening around the country, and I really recognise that, you know, for many Australians, their house is their most important asset,” O’Neil told Seven’s Sunrise.
“What that report also shows us is that house prices will start to grow again, and CBA says that will happen at some stage next year. The housing market in Australia is inherently cyclical. We see periods of really strong house price growths that are followed by a period of housing downturn. That’s happened now about four times in the last decade.”
O’Neil said downturns in property prices were always expected, and were an inevitable outcome of the government’s attempt to stabilise intergenerational inequality in the housing market after it made major changes to property taxes in its May budget.
“We’ve seen house prices in our country grow by 300 per cent since the year 2000. If that happens for another generation in our country, our nation is going to be unrecognisable to us in terms of equality and aspiration.”
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