Chart of the Day: Property Performance

Advertisement

Actually 4 charts today, all from the RBA’s Financial Stability Review, the household side covered by Delusional Economics this morning.

I’m focusing on Section 1 “The Global Financial Environment”, and given our particular proclivity for property prices, I thought this chart had merit:

A few things stand out. First, France’s residential property market appears to have outperformed even Australia since the GFC. Ireland has taken the one-two blow on both sides of the market, whilst UK values are starting to “taper off”. The US housing recovery remains elusive.

What about Asia?

Hong Kong and Singapore are renowned for their real estate busts and booms and this historical chart is telling, as is the credit-to-GDP ratio, which for most regions is above the 1997 Asian financial crisis levels. Which is interesting, given non-performing loans are plumbing new lows:

In contrast to first cohort listed above, except for Canada and Australia, which are “different”:

At least Australian arrears rates aren’t surging (sic), particularly in the rich mining states – again the size of the NSW property market hides the underlying: