Signs A Property bubble exists within Sydney – Fact #1

Sydney property bubble

The Australian mortgage debt graph is a graph you need to see to indicate that Sydney and Australia has a property bubble of massive proportion. The graph shows Australia’s credit fueled debt especially Sydney’s, along with government policies (for e.g. capital gains tax discounts, negative gearing and superannuation funds allowed to invest in residential property).

Personal Debt vs. Household Debt in Australia.

The above graph clearly shows Australian’s are not increasing their personal debt through credit cards and a percentage per-capita. There is a clear indication that household mortgage debt is through the roof.

From 2004 through to 2015 there has been an increase in average per-capita household debt from $20,000 all the way up to $50,000 representing a 250% increase in household mortgage debt per capita.

This amount of mortgage debt is monumental and the highest in recorded history.

To make matters worse, A video which can be viewed here by David Murray, the ex-CEO of CBA which is the largest bank in Australia & also headed the Australian financial inquiry stated on an episode of Switzer that Australia was in a property bubble and all the signs are there including a refusal by the general population to believe that house prices will come down.

He also indicates that we do have an oversupply of apartment dwellings within the capital cities across Australia, backing up our apartment oversupply research on the Sydney market.

All the signs are there that there is a property bubble in Sydney & Australia generally.