Is Housing a threat to economy?

The latest national accounts show the resilience of the Australian economy, with growth expanding by 0.3 per cent in the first quarter, which dragged the GDP annual growth rate down to 1.7 percent well below the 3 percent rate which is normally associated with strong employment growth. OECD said the Australia's biggest domestic risk is a large fall in house prices. Is it mean that Australia has to keep the property market prosperous to boost growth? Or would the Reserve Bank lift interest rates to keep the property market healthy? Wages grew only 1.5 percent throughout the year which is a negative growth considering the inflation. How could we keep expanding domestic demand if the wages stay low increase? Associate Professor He-Ling Shi, Department of Economics of Monash University, accepted the interview with SBS Mandarin Program. Jason Liu has more.

Reserve Bank of Australia, Martin Place Source: WSJ/ EUROPEAN PRESSPHOTO AGENCY