FIND YOUR LOCAL BUYERS' ADVOCATE:
    TALKS & PODCAST           CALL US CALL US
1300 655 615
 
 

The
Propertybuyer

Podcast

Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

How Does War Affect Property Prices - March 2022

March 25, 2022 / Written by Rich Harvey

 

By Guest Blogger, Terry Ryder, founder,

hotspotting.com.au and propertyU

 

I’ve heard some pretty crazy predictions about what will happen to the property market in the 40 years I’ve been researching and writing about real estate - but I reckon I heard the craziest one this week.
I shouldn’t really be surprised considering where it came from.
One of the nation’s most high-profile economists - who loves to dabble in areas where he’s not an expert, including property (and over the years has got it horribly wrong more often than any other high-profile commentator) - has predicted that the war in Ukraine could result in Australian housing prices dropping by up to 15%.
If this prospect concerns you at all, don't worry - I can tell you it won’t happen.
I don’t know what sort of long bow this economist drew to come up with that 15% figure, but his prediction that the Russian invasion of Ukraine will slow Australian residential property sales and cause prices to slump is really stretching the imagination.
Many Australians are sympathetic to the people of the Ukraine who are caught up in the Russian invasion, but the war in Europe will have no effect on their decision making when it comes to buying property.
There are plenty of factors that do affect the Australian property market and the war in Ukraine is not one of them.
Realistically the biggest impact Australians will feel from the war is rising fuel prices which will flow through to higher costs of living.
Even that shouldn’t have too big an impact on owners with mortgages, as the latest figures reveal most Australians now have a two-year buffer on their repayments.
I would suggest the opposite of what is being suggested may be what actually occurs.
If history tells us anything it is that people look for certainty in a crisis and in Australia that means investing in bricks and mortar. We’ve seen it many times over the years - when there is economic uncertainty in Australia or in the world, real estate thrives.
After the 9/11 attacks in 2001 Australians still considered property a safe haven for investment. Real estate boomed for the following 2-3 years.
Prices bounced back quickly in Australia after the GFC in 2008, with good growth in Australian house prices in 2009 and 2010.
And since the start of the Covid pandemic, the more people felt uncertain the more they retreated to the relative safety of bricks and mortar.
It’s a bit of a cliché but it’s true.
Australian real estate has boomed in the wake of the uncertainty created by the pandemic.
As it stands at the moment, the only likely impact on the Australian property market from the war in Ukraine is that it may push demand to even higher levels.

 

  To have one of the friendly Propertybuyer Buyers' Agents  to contact you:

Send us your property brief   or

call us on 1300 655 615 today.

The Propertybuyer
Podcast

 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.