In a new research report given by Morgan Stanley, it has been revealed that the housing prices in Australia are highly overpriced, which prove to be a threat to the economy of the country. But with this, he also added, that there is no sign of these housing prices to fall down in the near future.

Gerard Minack, Chief Economist at Morgan Stanley in Australia, said, “Dodging the worst of the global financial crisis didn't demonstrate that there's no bubble, in my view it just showed we dodged the prick”.

With this, he added that he isn’t convinced with the controversies looming over the sustainable housing prices; and neither does he say that debt isn’t a great difficulty or that the damage to be done on the banks, can be prevented by the policy-makers.

This issue came to forefront after the house prices growth completely flattened in Australia and it was majorly because of the multiple interest rates augmenting, which occurred between October 2009 and May 2010.

Even in the late 1990s to the year 2004, the prices of houses almost doubled, leaving the property sector of the country on the brink of a heated debate. After this period, these prices had become stable. But yet, it has been seen that on each value metric, the Australian house prices are the costliest of all; whether compared to the history, or to that of other countries.