3 Fun facts about our property market

If you're like me, who would rather believe the facts and statistics, you'll know our property market has moved into the next phase of the cycle.

In fact, the Australian property market is at the beginning of a property Super Cycle - a period of several years of significant price growth, despite all the negative news that the media wants us to believe.

So as a property investor, what should you do next?

Well, to help you decide, here are 3 fun facts to help you in this new cycle of our property markets:

FUN FACT #1

You’ve probably read that the total value of Australia’s 11.3 million residential properties is $11.7 trillion

But a trillion is such an unfathomably large number that it defies intuition.

Here's a way to make a trillion more intuitive:

• 1 million seconds = 2 weeks
• 1 billion (1,000 million) seconds = 32 years
• 1 trillion (1,000 billion) seconds = 32,000 years !!!

Whoa!

So when we say the Australian residential property market is worth $11.7 trillion that’s a very large amount.

Too big to fail!

It's easy to become numb to these crazy numbers as they get tossed around in the media, but it’s also worth remembering that the total outstanding mortgage debt is (only) $2.4 trillion.

So despite all the worries about interest rates and mortgage debt – the total loan-to-value ratio of Australia’s housing market is in the order of 20% - that’s not really a concern is it?

FUN FACT #2

According to the Australian Bureau of Statistics Australia’s population clock passed 27.7 million people.

This projection is based on the estimated resident population at Mon, 31 Mar 2025 and assumes growth since then of:

• One birth every 1 minutes and 49 seconds.
• One death every 2 minutes and 50 seconds.
• One person arriving to live in Australia every 0 minutes and 52 seconds.
• One Australian resident leaving to live overseas every 2 minutes and 1 seconds.
• An overall total population increase of one person every 1 minutes and 10 seconds.

Over the last year, we had around 400,000 new immigrants and these high immigration numbers are likely to continue for some years and they are occurring at a time when we just can’t produce enough new housing stock.

These numbers will underpin our property markets and our economy as these migrants have to set up new households and that’s driving housing demand and fuelling our economy.

FUN FACT #3

The stats are in from all the research houses and property prices continued to rise month after month this year with many capital cities at new peaks

So if you’ve been waiting for the the perfect time to get into property, you missed it.

I guess that’s not really a fun fact, is it?

But it's not too late. There's currently a window of opportunity to get in and stake your claim on the property ladder

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.