OECD agrees with JA’s housing market concerns
John Alexander has been warning about the risks to the housing market because of ongoing unbridled investor driven speculation for many years. The latest OECD report on the risks to the Australian housing market reinforces his concerns.
Mr Alexander said: “Stabilising investor driven volatility and rampant inflation in the housing market should be our first priority as policy makers.
“Policies that promote stable and moderate growth in the housing market, with no policy induced falls, driven primarily by home owners, should be pursued.
“As investors continue to fan the flames of the housing market in Sydney and Melbourne; driven by record low interest rates, limited supply, and favourable tax treatment; the risks to the housing market will continue to rise.
“Labor’s dangerous calls to abolish negative gearing will most likely tip the unstable housing market over a cliff. It is very dangerous as the risks to the financial position of most Australians would be too high.
“Equally, the Government should consider reform that would constrain investor driven speculation,” Mr Alexander said.