Australian housing market to experience 'up crash' on back of homebuilder mini-boom – investment bank

UBS's George Tharenou says homebuilder and responsible lending changes could prompt a spike in construction that will rapidly fall away

Australia's housing market is set for an up crash" as the government's homebuilder subsidy scheme prompts a spike in construction that will rapidly fall away, investment bank UBS says.

George Tharenou, the chief economist at UBS in Australia, said due to the homebuilder spending spree he had increased his estimate of the number of houses that would be built in 2021 from 185,000 to 230,000 - well above the 175,000 level predicted by other economists.