The biggest property market threat to Australia’s recovery: Harry Dent | Instant News


A relatively young Australian population will support the country through post-coronavirus recovery, provided it can penetrate the property market, according to leading demographic estimates.

The American commentator and demographer, Harry Dent, said that the demographic profile that is inclined at a young age in Australia bodes well for the future, supported by strong Asian immigration.

But the country’s high-leverage housing market still carries the risk of economic recovery.

“The biggest challenge for Australia is the bursting of the real estate bubble, and its impact on the net worth of households, and the impact on banks, which have 75 percent exposure to this,” he said.

Yahoo Finance in front of a live webinar on Wednesday.“data-reactid =” 35 “>” Australia will continue to be hit by their exposure to commodities, exports, and when this real estate bubble is impacted by another – I tell people in Australia, the 2017 mini accident, 2018 is an appetizer. You will see house prices drop 30 percent to 50 percent in Australia, “he said Yahoo Finance in front of a live webinar on Wednesday.

Peter Switzer, Terry Ryder and Michael Yardney all watched. “data-reactid =” 36 “> Demographics have made the same predictions in recent years during a visit to Australia, fellow experts and commentators Peter Switzer, Terry Ryder and Michael Yardney everything has been observed.

Dent, who mainly uses demographic trends to predict economic movements and market trends, called Australia along with New Zealand, Israel, Sweden and Norway as one of the five smaller developed countries with strong demographic trends.

On the other hand he warned that Europe, Japan, Taiwan, China and Korea would grow weaker than the Covid-19 period due to older demographics and reduced spending.

plummeted by 20 percent, without economists or other commentators who predicted a 50 percent decline in value. & nbsp; “data-reactid =” 39 “> AMP Capital economist, Shane Oliver, had previously predicted a surge in unemployment caused by coronavirus could see property prices in Melbourne and Sydney plummeted by 20 percent, without economists or other commentators who predicted a 50 percent decline in value.

national property price index grew 0.7 percent in March, although this is likely to be the last gasp before unemployment extends, suppressing consumer confidence and the open house ban keeps the wind out of the property market. & nbsp; “data-reactid =” 40 “> The national property price index grew 0.7 percent in March, although this is likely to be the last gasp before unemployment extends, suppressing consumer confidence and an open house ban making the wind out of the property market.

In addition to property risks, Dent said the coronavirus crisis will push most economies into a short-term recession from the second quarter to the third quarter and potentially the beginning of the fourth quarter.

“Sometimes you have to go into a recession to get things done. This is what this is, and there is no other way to get out of it.”

“This virus is a short-term thing … But it was a perfect surprise because it would really make a large part of the economy short-term depressed: so many businesses shut down, so many trips and retail-related things, literally we can see 10, 15, 20 percent unemployment in the second quarter in many countries, and bleed to one third, “he said.

He said the virus explained the current weakness in many developed countries, namely slowing productivity.

“I always say, ‘Why print $ 20 trillion in money just to keep the economy like the US growing two percent, Europe 1.5 percent, and Japan at one percent?’ Such is the weakness of the fundamentals. “

Short-term declines will be followed by longer deleveraging periods, but once deleveraging periods occur, countries must come out stronger, Dent said.

“Sometimes you have to go into a recession to get things done. This is what this is, and there is no other way to get out of it.”

Harry Dent lives at 12 noon AEDT, Wednesday 8 April. “data-reactid =” 49 “>Watch Harry Dent lives at 12 noon AEDT, Wednesday 8 April.

here& nbsp; and stay abreast of the latest money, news and technology news.“data-reactid =” 50 “>Get your money functioning with Yahoo Finance daily bulletins. List here and stay on top of the latest money, news and technology news.

Facebook, & nbsp;Indonesia, & nbsp;Instagram& nbsp; and & nbsp;LinkedIn.“data-reactid =” 51 “>Follow Yahoo Finance Australia on Facebook, Indonesia, Instagram and LinkedIn.





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