Australian house prices overvalued by 52 per cent

A study by the OECD found that house prices in Australia were overvalued by 52 per cent, based on a measure of value justified by rental income. Of 15 OECD countries studied, Australia had the highest average house prices relative to rental levels, the third-highest prices relative to incomes, and the fourth-highest levels of household debt relative to incomes. The OECD said a house price correction could lead to an economic downturn.