‘Making real estate prices affordable will lure more immigrants to Australia’

By Jit Kumar
Representational image. Photo by Denise Jans on Unsplash

US financial expert Harry Dent also predicts a property bubble bust in Australia

With the Australian population ageing, a drop in property prices could actually benefit the country as it’s going to attract better quality immigrants from India and other parts of Asia, says US financial expert Harry Dent.

Pointing out that Australia is one of the most overpriced property markets in the world, the market veteran claimed in a recent podcast interview with economist Martin North that making real estate prices affordable will actually lure more immigrants to this country and thus help soften the economic impacts of an ageing population.

“We’re all aging now except for Australia and the country’s going to attract more Asian immigrants if real estate becomes affordable—if I was Chinese or Vietnamese or Thai or Indonesian or Indian and I was looking to move somewhere I would move to Australia if real estate was affordable,” Dent says.

The market expert says that even the quality of life, the people, and the weather is “better in Australia”.

“But the only reason for me not to live there would be higher taxes and higher real estate cost. So it’s going to be good for your country and extra good for your children and grandchildren that real estate comes down to may be just four or five times one’s income instead of eight or twelve,” Dent says.

Dent predicts a property bubble bust in Australia and that he says would a shocker. “Banks are largely exposed to domestic real estate and would be in trouble if house prices went down by even 20%. And I think it’s going to be 30% to 50%,” he says.

“Sydney and Melbourne would drop by up to 50% as they had the worst bubbles. Brisbane would be next worst at a drop of around 40%, followed by Adelaide at 30%. That is going to be a shock. That’ll probably be the biggest shock Australia’s had,” he adds.

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