The Indivisibility of the Aussie Housing Market

Housing is not purely a financial asset, like a share or a bond. It makes the price discovery process much more complex and then of course it depends on the marginal flows. Owner-occupiers own 98% of all housing in Australia which is much higher than any other country in the world that I know of. That means they're funding the debt so that kind of elevates the house of debt to income ratio vis-a-vis peers overseas. Retail investors and owner-occupiers who are making decisions about investment properties will behave very differently to an institution.