What Economic Tensions Are Impacting Australia’s Property Market?

What is driving the relentless rise in Australia's property prices, and how are homeowners managing as the fixed mortgage rates from the COVID era expire? These are important questions as we deal with rising inflation and increasing living costs, so in this episode, we tackle these issues to see how they're affecting both the housing market and potential buyers.

Joining us to break down these complex topics is Carlos Cacho, Chief Economist at Jarden Australia. Carlos has a deep understanding of Australian economics, especially banking and housing markets, thanks to his previous roles at UBS Australia and Colonial First State Global Asset Management. He holds a Bachelor of Economics and a First Class Honours in Economics from the University of New South Wales, making him a highly credible voice on these matters.

Make sure to tune into this episode for a thorough analysis of the current economic pressures on Australia's property market and what they could mean for the future. Equip yourself with the insights needed to better understand these challenging economic times.

Episode Highlights:

00:00 - Introduction

01:08 - Who is Carlos Cacho?

01:30 - What led Carlos to oppose the common view on reducing serviceability buffers?

06:20 - Does lowering the serviceability buffer improve affordability or just increase prices?

08:48 - Will increasing urban density in Sydney truly improve housing affordability?

12:40 - What factors contribute to continued property price increases in most cities?

18:35 - Key differences in the apartment and house markets in major cities

20:36 - Do seasonal trends affect real estate listings?

26:43 - Will higher interest rates persist longer than anticipated?

32:05 - Could we see a return to the economic conditions similar to those before 2022?

36:27 - Is climate change becoming a big driver for investment around the world?

38:44 - The impact of high interest rates on economic stability over the next decade

44:15 - What are the anticipated migration trends for the upcoming years?

50:38 - Are we meeting our labor demands through skills migration?

52:05 - Carlos Cacho’s property dumbo

About Our Guest:

Carlos Cacho is Chief Economist and leads Australian bank research at Jarden in Australia. Carlos’ research covers all things Australian Economics and Banks, with the strong focus on the housing market. Prior to joining Jarden, Carlos spent three years as Australian Economist at UBS Australia, and previously five years at Colonial First State Global Asset Management. Carlos holds a Bachelor of Economics, as well as a First Class Honours in Economics from the University of New South Wales. 

Connect with Carlos Cacho:

• LinkedIn https://www.linkedin.com/in/carlosscacho/
• Website https://www.jardengroup.com.au/

Resources:

• Visit our website https://www.theelephantintheroom.com.au
• If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast questions@theelephantintheroom.com.au
• Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au
• Work with Veronica: https://www.veronicamorgan.com.au
• Looking for a Mortgage Broker? https://www.blusk.au
• Work with Chris: hello@blusk.au

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