PHOTO: Sydney – Australia
Financial experts are warning of a deep and sustained property crash triggered by coronavirus – but caused by demographic changes, overbuilding and soaring debt.
US author and financial commentator Harry Dent warned Australia of a looming the financial crash of a lifetime which would bring mass unemployment and widespread bankruptcies.
The demographer said coronavirus is only the trigger. Too much central bank money printing made a new Great Depression inevitable and an economic meltdown had been looming for years, he said.
Mr Dent has predicted this downturn would be deflationary despite the money printing.
Australia’s banks are overly exposed to domestic real estate and would be in trouble if house prices went down by even 20 per cent, he said in a YouTube interview with respected economist Martin North.
‘And I think it’s going to be 30 to 50 (percent), in that range,’ he said.
Mr Dent said he thought Sydney and Melbourne would drop by up to 50 percent as they had ‘the worst bubbles’.
Brisbane would be next worst at a drop of around 40 per cent, followed by Adelaide at 30 per cent, he said.
‘That is going to be a shock. That’ll probably be the biggest shock Australia’s had,’ he said.
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