Market analysis: Australian housing data shows urgent need for reform.

A prominent independent economist in Australia has stated that the housing finance data for the third quarter highlights issues with the country's housing system, and is calling for reforms to the tax system to prevent the market from overheating. Saul Eslake said that in the past two quarters, the number and value of housing finance commitments made to investors have increased by 20.3% and 20.7% respectively. The data also shows that in the third quarter, 83% of the finance commitments made to real estate investors were used to purchase existing homes, therefore having little impact on increasing supply. He argued that it is indeed time for the government to scale back the generous tax incentives provided to speculative investors.