Frydenberg: Rising property prices an international phenomenon

A warning from the International Monetary Fund that Australia’s hot property market could lead to financial instability has been dismissed by Treasurer Josh Frydenberg who says rising property prices are not unique to Australia.

The global financial group says the nation’s property boom could expose economic vulnerabilities and has called for the implementation of a “comprehensive policy response” to rein in prices.

“The property market has been going up as a function of historically low interest rates, a strong and stable labour market and the fact that people are wanting to get into the market," he told Sky News.

Mr Frydenberg said a variety of government support programs like homebuilder have made that first purchase much easier.

“It’s not just an Australian phenomenon, it’s one we’re seeing right around the world with rising property markets but I know that regulators are watching it very closely.

“I’ve been talking to the heads of APRA – the Australian Prudential Regulator – as well as the head of RBA, Phil Lowe, and I know they’re watching it very closely.

“But the thing to remember is that household assets are worth more than household debt and that for most people, when they get into the housing market, that is their biggest and largest lifelong asset and one that serves them in very good stead.”

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