Australian Property Market. There is NO such thing!
The first thing that we must understand is that there is no such thing as the “Australian property market.” The property market is not a singular entity. Rather it consists of many different property markets throughout the country, all moving through different stages of the property growth cycle. Each “market” is affected by different factors at different times. As soon as I hear someone in the Australian media start talking about the ‘Australian property market’ and how it’s either going to boom or collapse, I know I can immediately ignore whatever comes next. They are clearly not aware of how property works, as is the case with many other Australians.
Property is a supply and demand equation: how many people live in an area versus how many houses are available in the area. Each capital city and each regional centre is a different property market. Nearby property markets can influence one another even though they are separate markets. For example, if a large mine was opened in a small mining town and several thousand jobs were created, there would be a massive property boom in that area. One hundred kilometres away, however, there may be no boom at all. Conversely, if that large mine had to close down, there would be a major disaster and the property market in that town could collapse altogether.
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