We attended a Macquarie Bank seminar this week where their Rod Cornish detailed historical stats and some forecasts on our property market. One tidbit that stood out was this gem: in the past 25 years Brisbane’s annual median house price went down just twice. In 1993 and in 2009. So in 23 of 25 years our median price went up.
There’s good reason residential property is considered “safe as houses”.
Ask a banker which security they’ll lend on. Residential property is king to them. We understand the merit of a balanced portfolio but do sometimes wonder if some investors have simply forgotten the strength of property?
For those of us too time-poor to track and research, property doesn’t rely on scientific analysis to determine the right time to buy or sell. Rismark’s Christopher Joye says price volatility of property is just 3 or 4% compared with 19% for shares. It’s no surprise you may be feeling giddy watching the All Ords of late.
Matusik Property Insight’s Michael Matusik says Australians on average hold 80% equity in their dwellings, and higher for their principal place of residence. There’s no great risk in that and shows the strength of our nation compared to others. Our love affair with bricks and mortar does continue, even if some of us have had a wandering eye in recent years.