Even though the property market has gone through plenty of challenges over the past 30 years, everyone who has purchased their own home in 1989 seems to be satisfied till date. Moreover, the median prices of property in Sydney and Melbourne have risen by 452% and 529% respectively. It is evident that occurrences such as 9/11 and the GFC of 2008 have tampered with the market severely. Nonetheless, anyone who has availed the opportunity to purchase a property 30 years ago has made a profit of approximately $750,000, if analyzed in the present times.
Hari Yellina, of Orchard Tech, opines that even though the market fluctuates quite a bit, the property prices will continue to rise in the future. The present condition is that of a harsh lending environment, meaning that not a lot of people can borrow money to purchase properties. The situation is utterly contrary to that of a market crash. Once the lending restrictions are loosened, people will be able to borrow money like before. At this point of time, the median rebound will most likely increase.
According to ABS data, the Australians aged 65 and above will rise over 60% in the coming four years. At this point, the government will have to seek around $24000 for each individual and $36,000 for each couple that is eligible to receive a pension. Furthermore, the government intends to create newer jobs to replace the baby boomers. This will revive the revenue circulating in the economy and also increase the tax revenue to pay the improved pension.
The Market Cycle
Even though the media had made it seem that properties would continue to grow forever, the capital city’s property markets only witnessed a period of rapid growth for four to five years. After this sudden increase, the markets remain stagnant for the next five to seven years. Therefore, this whole pattern is a natural part of the growth property cycle, and the prices will continue to rise and remain steady in future times. Hence, the situation remains proper and stable in current times.
Even though the market fluctuates quite a bit, the property prices will continue to rise in the future, says @hyellina. The present harsh lending environment, means that not a lot of people can borrow money to purchase properties. #TheIndianSunhttps://t.co/EZ8vYN9Rw6
— The Indian Sun (@The_Indian_Sun) September 16, 2020