PHOTO: Property Bubble

Australian residential prices remained “40% overvalued” and the bubble is yet to burst, the international doomsday commentator Harry Dent has claimed.

Australia was going to lead the next global bust, he said.

Dent forecast “Australian prices would fall 50%” in the next downturn and he ranks Australia as the third most overpriced market in the world, coming in behind Hong Kong and China.

“Don’t take the ‘oh, we had a little crash and it’s over, time to buy again because we don’t want to miss out’,” Dent said.

“Real estate, mark my words, will in five, 10 or 15 years time never be better than this. The best cities, Sydney and Melbourne, are going to go down more than say Adelaide. Rich people will lose the most money,” he tipped.

Dent again claimed that Australians’ exposure to a weakening Chinese economy would be the primary trigger of the downturn.