With downside risks mounting for Australian property, Domain continues to play the role of confidence trickster:
…a handful of industry stalwarts have lived through several uncertain economic times, including the 1987 stock market crash and the Australian recession of 1991…
Ray White Surfers Paradise principal Andrew Bell: “The omens are really positive for real estate.”
Having joined the industry in 1972, Andrew Bell has experienced his fair share of economic shocks and has a cool-headed approach to the next few months ahead.
“I’ve been through credit crunches, credit crisis, three recessions, four stock market crashes,” he said. “We recover every time. It takes a bit of time but you dust yourself off and we go again…
Bell said the fundamentals of real estate remained positive, even during this period of uncertainty.
“Interest rates are at record lows, population growth is steady, we’re building significantly less properties to house that growth. That’s a recipe for a shortage of properties.”
“The omens are really positive for real estate”…
Kay & Burton’s Michael Gibson: “…the world has become more resilient”…
Mr Gibson said once there was “freedom of movement” the market would take off – with gusto…
Christie’s International Real Estate agent Ken Jacobs: “Property is a long-term hold”…
Many will be driven to the certainty of bricks and mortar, he said.
“Quite often when there are issues with the stock market, it can reflect positively on the property market. Property is a long-term hold.”
My counter arguments:
- Mortgage rates have no further room to fall;
- Unemployment will likely surge into double digits, with huge chunks of Australia becoming reliant on welfare;
- Household incomes are facing a significant cut; and
- Net immigration into Australia will fall sharply, slashing demand.
If these are “positive omens”, then you need to see a shrink.
