Falling Property Prices is Bad News

There is no questioning that housing affordability is a serious issues in Australia, when comparing home prices to disposable income we rank at + 9%. However, there are a number of solutions that can assist in addressing this issue.

The protectionists argue that restricting migration would lead to less demand for housing and prices trending downwards. This sounds fine until you take into account the economic benefit that migration provides. Take Japan for an example, an economy that has virtually blocked migration, where the population has declined by more than one million people resulting in more than 350,000 houses that are no longer needed.

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How does the Australian housing market rank against the rest of the World?

The famous real estate saying, it’s all about location, location, location, not only applies to our Australian market, but also at a global level. Where the global housing markets are in no way synchronized, making some countries rank better than others.

With this in mind, it is the perfect opportunity to review how the housing market in Australia stacks up to the world. So where do we stand?

Housing Prices

Australia is tied third with Sweden at 11%, where our arch rivals and neighbours New Zealand rank as the hottest market in world at 13% for home price growth.

Housing Affordability

Our housing prices are extremely appealing, but how do we compare with the affordability in comparison to the world? Australia sits on third most expensive country at 9%, and New Zealand as the most expensive.

So, what country is the best value for money?

Interestingly, New Zealand is the hottest real estate market in the world, with housing prices reaching a growth of 13%, and the weakest being Italy at 3% decline. However, the best value for money be Denmark, where affordability is at -5% disposable income, with housing price growth at 6%.

Source: http://www.freshpropertymanagementgroup.com.au/how-does-the-australian-housing-market-rank-against-the-rest-of-the-world/