Is an Australian Property Market Crash Imminent?
Economists have recently shared predictions that Australian property values could fall by as much as 40% over the next twelve months but I’m not convinced. In fact I can see plenty of support for Australian property prices. Here are a few reasons I think our market will be resilient:
- Quality property listings are down nationally and the national rental vacancy rate is below 1% (SQM Research 13 Sept 2022) and rents are increasing.
- Immigration thresholds have just been substantially increased which will increase demand for housing, whilst at the same time new dwelling construction is falling- due to increases in the cost of materials and a shortage of labour.
- Unemployment is low, wages are growing, and our economy is firing. Everything we produce and export is in demand and is fetching top dollar.
- Households have a buffer of 250B in savings nationally, a chunk of which is in offset accounts.
- Government grants, and a new stamp duty deferral system make it easier for first home buyers to enter the market.
There’s so much evidence that Australia is, and will continue to be resilient.
We really are the lucky country.