Business

Jan 16, 2013

Lobbyist bluster can’t hide struggling property market

The performance of property has confounded most optimists who have long claimed that property prices would be cushioned by interest rate drops.

Adam Schwab — Business director and commentator

Adam Schwab

Business director and commentator

It won’t impress the shrinking legion of property bulls, but Fairfax recently reported that Australian house prices fell for a second straight year during 2012, marking it the “worst run for the national property market in 16 years”. It seems optimism has largely fallen out of the once booming market, with 77% of 9000 respondents to a Fairfax survey stating property prices need to fall further.

The performance of property has confounded most optimists who have long claimed that property prices would be cushioned by interest rate drops (rates were cut by of 2% during 2012).

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4 comments

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4 thoughts on “Lobbyist bluster can’t hide struggling property market

  1. Mike Smith

    Responses to ‘online surveys’ are notoriously known to be hacked.

  2. K.D. Afford

    Recent upbeat developments like the unfortunate one in Mount BarkerSA, will stall or collapse as this been all beat and no drum. No jobs, empty shops, motor car dependent lifestyle cannot justify the $400K all house no block prices and we will see a crash in real estate. We are all caught up in it, one way or the other.

  3. Mike Smith

    SA seems somewhat more dire than the rest of Australia, was just back there a week or so ago for holidays and it didn’t look good. But extrapolating SA to the rest of Australia isn’t valid.

  4. Hamis Hill

    Unaffordability aside, the Baby Boomers are retiring as predicted, selling out for a sea or tree change and there are just not enough buyers in the succeeding generations to keep prices high.
    This was predicted fifteen years ago.

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