Property spruiking levels tell-tale signs of exuberance: Paul Bloxham

The current higher levels of property spruiking activity was a sign that the Australian property was becoming overly exuberant, Paul Bloxham, HSBC Australia's chief economist has warned.

“Some of the tell-tale signs are there,” he told Fairfax Media on Friday.

“A pick-up in the property spruiking business is a signal things may be getting a little too exuberant,” said Paul Bloxham.

The former Reserve Bank official co-wrote a 2010 study into the causes of the 2003 Sydney housing boom and bust, noting it was accompanied by housing seminars in hotel conference rooms, along with direct telephone marketing.

Last month it emerged that state consumer watchdogs were closely monitoring 37 property investment spruikers.

The NSW Fair Trading, Consumer Affairs Victoria and Consumer ­Protection WA warned spruikers that “regulators across Australia are currently monitoring the information, advice and products that are being ­provided in the marketplace”.

Spruikers may be breaking the law for the unsolicited selling of property or education services at free-advice events, the consumer agencies suggested in letters sent to them.

They note the “many instances” where they hadn’t complied with the requirement that they tell people about the right to terminate contracts during a cooling off period.

Making false or misleading representations about property investment carries the possibility of criminal and civil action and all claims made at seminars must be substantiated, advised the letters, obtained by the Australian Financial Review.