Another housing bubble in Australia?

Analysts all over the world are concerned that rapid price gains amid record-low interest rates are sparking fears of another housing bubble in countries starting from Canada to Sweden and China. Moreover, Britain's growth is considered by economists to be mostly led by a strong demand for property that was spurred by government schemes. And now Australia, where housing sector account for almost 60% of average household wealth, compared with 45% average across the world, has joined other countries, as constrained supply and strong demand from investors is pushing prices higher. On Monday the Bureau of Statistics said that home-loan approvals in Australia rocketed a seasonally adjusted 4.4% in September, from a 2.5% gain recorded a month earlier, and outpacing a rise of 4.0% predicted by analysts. 

Furthermore, home lending improved in all regions, except resource-rich Western Australia and the Northern Territory. Home-loan approvals have been rising steadily so far this year, and the tendency is likely to persist for the rest of the year. Finance approvals to build a new home jumped 1.8% over the same period, whereas lending for already built houses surged 5.2%. While the economy is trying to switch to other sectors, housing may become another locomotive, since property market is emerging as one of the biggest strength in the economy as a long resources boom begin to wane.