With the triple challenge of a pandemic, recession and social and political unrest around the world, people are wondering whether property is the way to go.
The economic slowdown caused by our government to control the coronavirus pandemic plus rising unemployment and falling consumer confidence is creating significant headwinds for our property markets.
Despite this they have remained remarkably resilient.
And it’s true… property values are likely to fall a bit further in certain segments of our property markets (I’m looking at you high rise apartment towers and other secondary properties) before they bottom out.
Of course I can understand why some property buyers have “gone on strike” while waiting for the picture to become clearer.
Many must be finding it hard to foresee strong house price growth at a time when the media is full of negative headlines about property.
But it’s important to keep a big picture view and remember what’s happened over the long term?
So let’s look at how our property markets have performed over the last 40 years…
Have property values really doubled every 10 years as many pundits would suggest?
I remember last year when there were similar concerns and at that time a MoneysaverHQ analysis of 40 years of Real Estate Institute of Australia data has found that a majority of state capitals have indeed doubled every decade.
Around the same time leading finance journalist Anthony Keane @keanemoney reported that since the REIA data series began in 1980:
- Sydney median house prices have doubled four times, up from $64,800 to $1.06 million — a 1536 per cent gain.
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