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Steven Cross
The head of a leading real estate group has delivered a smackdown to ‘experts’ who are claiming that Sydney’s 'housing bubble' is about to burst.
CEO of McGrath Estate Agents John McGrath has lashed out at experts who claim Australian housing markets are set to collapse.
“I have no doubt that the designers of this conspiracy have data and spreadsheets to back up their theories, but I can share with you that after 30 years in real estate, I have heard these theories since I’ve been operating in this space,” he said in the McGrath report.
“The first time I heard them, I actually thought about changing careers. Why be in an industry that is overpriced and about to collapse?
“As we now hear the doomsayers for the fifth or sixth time round, I’m okay. I have made up my mind that their spreadsheets are wrong and life goes on.”
Mr McGrath said there were claims that the market was over inflated years ago, when a two-bedroom apartment in Sydney’s Paddington was selling for $100,000.
“What are these worth today? It’s hard to secure one for less than $1.2 million,” he said.
Mr McGrath’s claims echo the ones made by the Reserve Bank of Australia earlier this month, and 1300HomeLoans’ John Kolenda last week.
Mr McGrath pointed specifically to Sydney, claiming that prices were not inflated but have a fair market value that continues to rise.
“There’s no doubt that most of them are far better educated and also better credentialed than me to advocate such models. But the simple fact is that it hasn’t happened and it won’t happen," said Mr McGrath.
“There is no bubble.”
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