Many property investors and homeowners worry about the value of their property today.
But it’s important to take a long-range view and think about what the value of property will be in the future.
In today’s episode, we’ll talk about what may happen to property values over the next 25 years and look back at what’s happened over the past 25 years.
We’ll also have a chat with Dale Beaumont about Artificial Intelligence, and how that will change our lives in the coming years.
Where will the real estate market be in 25 years’ time?
- While most homeowners and real estate investors worry what the value of their properties today, maybe a better question is “where will property prices be 25 years from now?” And the good news is that, believe it or not, the median house price in Sydney could be over $6 million and the median apartment price in our harbor city could be close to $3.5 million in 25 years’ time.
- Over the past 25 years, the median house value nationally has risen by 412% – an annual growth rate of 6.8% or $459,900 –
- Melbourne had the highest average annual price growth – 8.1%
- Sydney 7.6%
- Perth – 6.7%
- Hobart – 6.5%
- Darwin 6.3%
- Canberra – 6.0%
- Brisbane – 5.9%
- Adelaide – 5.9%
- Think about it – who wouldn’t like to buy their parent’s house for the price they paid for it 25 years ago?
So, what’s ahead for property values?
- If property prices were to rise at the same rate as the past twenty five years, Australia’s median house value would reach $2.9 million by 2043.
- Here’s what Aussie’s report forecasts:
- Sydney house values $6.3 million
- Melbourne $5.8 million
- Canberra $2.9 million
- Perth $2.5 million
- Hobart $2.4 million
- Brisbane $2.3 million
- Adelaide $1.9 million
How will Artificial Intelligence change our lives?
- Artificial intelligence is already driving cars, reading emails and suggesting replies, and making phone calls
- Digital assistants like Siri, Alexa, and Cortana are already mainstream
- We can look forward to more driverless cars within the next five to ten years
- People might choose to live further from work if they don’t have to drive themselves – driving time can become work time or entertainment time.
- Artificial intelligence can be taught to learn from the past and make predictions for the future. This can be applied to real estate trends.
- Artificial intelligence could be used to make phone calls on the behalf of investors to find investment properties that meet certain criteria.
Links and Resources:
Some of our favourite quotes from the show:
“Another interesting trend that’s occurred – not surprisingly – is that the proportion of first homebuyers in the market currently is less.” –Michael Yardney
“What’s basically happening is that we’re trading our backyards for balconies and courtyards to live close to where all of the action is.” –Michael Yardney
“Sydney’s obviously growing at a much faster rate than the national averages and is going to add almost 2 million people to its population by 2037. That’s the equivalent of adding a new Perth into Sydney by then. –Michael Yardney
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