How much Australian property is overvalued by now
New analysis from AMP chief economist Shane Oliver suggests that Australian capital city house prices are significantly overvalued compared to historical rent-to-price ratios. While not predicting an immediate crash, the data indicates increased vulnerability in the property market.
Why it matters
High property valuations impact housing affordability and financial stability for millions of Australians, making market corrections a major economic concern.
Property News Property market How much Australian property is overvalued by now Wes Mountain September 23, 2026 — 3:00am
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Share A A A Houses are overvalued by 38 per cent across Australia’s capital cities, new analysis reveals, suggesting prices could have further to fall in the market downturn .
The data, from AMP chief economist Shane Oliver, indicates median house prices in every capital city are overvalued by at least a quarter, when compared to average rents – adjusted for inflation – over the past 40 years.
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