If housing prices bust, the banks will get hit hard. ﻿Experts are warning that while the Australian property market is known to be overvalued , and while it is known that a correction is necessary , the government simply can not afford to allow the market to burst , as the result would be too detrimental to the Australian banking systems . Despite these concerns , Australian banks have in fact tightened the banks ' lending to the property sector , by allowing them to hold a higher percentage of their deposits as reserves . This report also highlights that in the event of ﻿political or economic turmoil in China , a huge wave of Chinese ﻿ ﻿﻿demand will hit the Australian property market ; this report claims that Australia would not be prepared for such an influx.﻿
﻿Experts are warning that while the Australian property market is known to be overvalued , and while it is known that a correction is necessary , the government simply can not afford to allow the market to burst , as the result would be too detrimental to the Australian banking systems . Despite these concerns , Australian banks have in fact tightened the banks ' lending to the property sector , by allowing them to hold a higher percentage of their deposits as reserves . This report also highlights that in the event of ﻿political or economic turmoil in China , a huge wave of Chinese ﻿ ﻿﻿demand will hit the Australian property market ; this report claims that Australia would not be prepared for such an influx.﻿