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Westpac forecasts strong rent rises

Saturday 17th of November 2007

Even at that pace, however, it will take four years to restore equilibrium between rents and house prices, and that is assuming an eventual normalisation of mortgage rates, the bank’s latest economic commentary says. If mortgage rates instead remain at current levels, it will take 5½ years to restore equilibrium.

Houses are now grossly overvalued, Westpac economist Brendan O&...

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