Deutsche Bank says Australian housing market has not peaked
Deutsche Bank has refuted claims that the Australian housing market has peaked, stating in its report that there is evidence of more room for the market to expand, notably that the construction rate remains below historical highs, when compared to population levels. In fact, the bank said that construction would have to rise by another 20% to approach historical peaks. Deutsche Bank did however concede that a slowing of the market is possible.

Doomsayers are rushing in to herald the end of Australia's housing boom, but the picture looks positive and the construction cycle is below its peak, Deutsche Bank says.

The flames of a speculative peak in the housing market were fanned this week after auction clearance rates in Sydney, the epicentre of the boom, slipped to their lowest level in three years, while the latest Domain house price data shows prices in the harbour city were growing at half the rate they were just three months ago.

"There are now understandable concerns that house prices are too high, and that a slowing is in prospect," Deutsche Bank equity analyst Tim Baker wrote in a client note.