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By Michael Yardney
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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 is recovering.

In fact, the Australian property market has entered a new cycle, in spite of all the negative news that the media wants us to believe.

property time market clock house cycle investment timing watch growth

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 10.9 million residential properties is $9.6 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 $9.6 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) $2.2 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 23% - that’s not really a concern is it?

Population2

FUN FACT #2

According to the Australian Bureau of Statistics on the 28th of May Australia’s population clock passed 26.5 million people.

However only a month later, at the end of June, ABS estimates have been revised and they now believe there are 100,000 more people than they thought were here a month ago.

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.

Property Price4

FUN FACT #3

The stats are in from all the research houses and property prices continued to rise over June – that’s 5 consecutive months.

So if you’ve been waiting for the market bottom, you missed it.

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

About Michael Yardney Michael is a director 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.
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