Australian property is affordable, says expert

Australian property is still affordable despite recent price rises, an expert has said.

The Business Spectator's economics blogger Christopher Joye commented that those who have argued housing is becoming too expensive in the country are incorrect.

He noted as evidence for his view the fact that homeownership is relatively high at around 70 per cent and that mortgage default rates are among the lowest in the world.

Based on long-term data using the Reserve Bank of Australia's methods of calculating affordability, Mr Joye stated that the current level of housing cost is around the average for the past 28 years.

Rising prices should also not be expected if the market were overpriced, he added.

Such considerations may interest those thinking of buying property in Australia.

Recent price trends have shown significant increases in the value of property in the country, with the RP Data Rismark Survey revealing that there was a 1.4 per cent jump in October.

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