Prices of apartments will fall 10 -15%over the next 1-2 years in Australia

Oct 19 2016 at 10:19 AM Updated 0 min ago Save article Print License article Treasury secretary John Fraser concedes the 'housing situation' is a 'worry' Share via Email Share on Google Plus Post on facebook wall Share on twitter Post to Linkedin Share on Reddit Sydney's most bullish home sellers are not in the inner suburbs. Sydney's most bullish home sellers are not in the inner suburbs. Michel Bunn Share on twitter by Jacob Greber Treasury secretary John Fraser admits the country's high cost of housing is a "worry". Pressed on the high cost of housing, particularly for younger Australians, Mr Fraser said the gains in prices were fuelling a circle of increased wealth leading to people becoming more comfortable taking on more debt. "It's a worry. As an old person I talk with people my age. And the bank of mum of dad is becoming more and more prevalent," he told a Senate economics committee hearing on Wednesday. "It has impacts on superannuation, and why people are saving in their older years to fund their children's housing needs." "It has impacts on superannuation, and why people are saving in their older years to fund their children's housing needs." "It has impacts on superannuation, and why people are saving in their older years to fund their children's housing needs." Andrew Meares Mr Fraser questioned whether households understand enough about the consequences of debt, saying they should ask themselves how they would cope if their income was hit, or part or all of the family lost their job. "I don't take any joy that we have this housing situation. Particularly for younger people." Mr Fraser added that the biggest issue was a lack of supply and land release, as well as needed infrastructure investment on sewerage, roads, and transport. The comments echo a sharp escalation in concern from the Reserve Bank of Australia over a potential oversupply of apartments. For the third time in four days the central bank noted on Tuesday that a "considerable supply" of units would arrive over the next few years, adding to the need to closely watch the property market. Officials at the bank on Friday warned that property risks were coming to the "fore", while Philip Lowe cautioned in his first speech as governor on Tuesday that growth in rents was "very low and there is a big increase in housing supply still to come". And one of Australia's most experienced economists, Stephen Walters, warned that prices of apartments will fall 10 per cent to 15 per cent over the next one to two years. Read more: http://www.afr.com/news/treasury-secretary-john-fraser-concedes-the-housing-situation-is-a-worry-20161018-gs5fy3?&utm_source=social&utm_medium=twitter&utm_campaign=nc&eid=socialn:twi-14omn0047-optim-nnn:nonpaid-27062014-social_traffic-all-organicpost-nnn-drive-o&campaign_code=nocode&promote_channel=social_twitter#ixzz4NUAXmc2F Follow us: @FinancialReview on Twitter | financialreview on Facebook