House prices in Australia’s two biggest capital cities are between 25-30 per cent overvalued, according to a leading economist, but he only expects a 10 per cent fall.
Key points:
- Sydney houses up to 30pc overvalued, Melbourne around 25pc
- But economist Paul Dales only predicts a 10pc correction
- Prices in other capital cities within 10pc of fair value
To come to that conclusion, Paul Dales from Capital Economics has done the numbers on what houses should be worth.
Capital Economics estimates that Sydney house prices are about 30 per cent overvalued.
READ MORE VIA ABC