The Reserve Bank Governor, Phillip Lowe told a Parliamentary Economics Committee that he wouldn’t be surprised if house prices fell 10% from the recent peak in the short to medium term.

However, Brendan Coates, Grattan Institute economics policy director told Oliver Peterson on Perth Live that considering the rising interest rates, a higher drop in housing prices is more likely.

“The lack of high-density is making it harder for people to afford a home and if we want to have a growing population where people can still afford a home or rent, getting more housing would be a really good way to do it,” Mr Coates told Oly.

“Considering Perth is up 27% since the start of Covid, I would be surprised if it only dropped 10%. RBA’s own research would suggest that with interest rates rising you’re looking at more like a 15-20% drop -so Perth looks like a pretty good place to live at the moment.”

Press PLAY to hear more on Brendan Coates suggestions to boost the number of homes