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No bubble, only a boom says expert

"We're not over-geared, we're not overvalued and we're not oversupplied," according to respected economist Dr Gelber, BIS Shrapnel's chief economist.

Speaking in Melbourne at a recent Real Estate Institute of Victoria lunch, Dr Gelber said the global financial crisis had done the Australian economy a "huge favour" by crimping risks in the market.

"I can't remember in the last 30 years a time when I have been more comfortable and optimistic about investment in the market."

Problems in Europe and America were unlikely to affect Australia's economic outlook as almost 80 per cent of Australia's exports go to Asia, Dr Gelber said. "We're much more dependent on what happens in China."

"We're talking about average growth over the next five years of GDP of about 3 to 3.5 per cent," he said.

Dr Gelber dismissed the notion the housing market was suffering from a "bubble" effect.

"At the end of the day, we haven't got a bubble in our residential market. We're under-supplied not oversupplied. We need to build more, and we will. [House] prices will go up another 30 per cent over the next three years," he said.