admin-ajax.php

Australia’s slowing property market sees us slide on the global stage

More talk of Australia’s property Armageddon has reared its ugly head in the media recently, with the results of a global house price index revealing, well, pretty much what we already knew anyway; our house prices are sliding.

If this fall in our world rankings something to worry about?

The results of the Knight Frank house price index published in the Herald Sun list Australia as 28th in the world after falling 15 places, with our house prices dropping by 0.2 per cent for the year to March 2011 and 1.7 per cent for the quarter.

The 27 nations who ranked ahead of us, including Poland, Latvia, Finland, Indonesia and India, experienced increases in property prices, while our property prices are sliding. The UK came in at number 29 and the US placed 43rd.

However Australia is not alone in its real estate slowdown, with global house prices increasing by just 1.8 per cent in the year to March, representing the lowest annual rate of growth since the end of 2009.

Additionally, half of the 50 countries that were listed experienced flat or declining values, compared with only 18 for the previous year.

Knight Frank’s residential research head Liam Bailey believes we are yet to see the bottom of the market and suggests prices will likely hit their lowest point at the end of the year.

“In summary, we expect to see the current slowdown in global housing markets to continue,” he said.

This ranking is an interesting outcome for Australia’s property market on the global stage, considering not too long ago we topped the list as the least affordable country in the world.

But I’m not concerned and I really don’t think we need to hit the panic button yet. The reality is that we are experiencing a very healthy pause given the substantial capital gains we’ve enjoyed in the past. Our property markets are behaving normally – after a boom period we have a slump period – that’s the way the market works.

And for investors, the current climate spells one thing – opportunity. So I, for one, am not complaining!



icon-podcast-large

SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

icon-email-large

PREFER TO SUBSCRIBE VIA EMAIL?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

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 his opinions are regularly featured in the media. Visit Metropole.com.au


'Australia’s slowing property market sees us slide on the global stage' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!