Australia's financial stewards and bank regulators should be prepared for a hard landing in the housing market, according to the world's leading economic agency.
In its latest assessment of Australia, the Organisation for Co-operation and Development says the housing market poses a risk to the nation's economic growth going forward.
That comes amid elevated house prices and related household debt, the Paris-based group said in a report released on Monday.
House prices have fallen gradually since late 2017 and the market is on trfor a soft landing, the OECD said, but it stressed some risk of a hard landing remains and regulators should be ready for the scenario.
"Financial supervisors and bank regulators should be prepared in the event of a hard landing in the housing market," the report states.
