The real estate market should be resilient even in the event of a potential economic slowdown, explains a real estate expert.
Recent figures from the Australian Bureau of Statistics show that the unemployment rate reached 7.4% in June, the highest level since November 1998. This means that nearly one million of the working population is Unemployed.
Peter Koulizos, President of the Property Investment Professionals of Australia (PIPA), said that while this may signal an economic slowdown, the real estate market is likely to withstand any potential impact.
Koulizos said that property owners and investors should be reassured by the resilience of real estate during previous economic upheavals.
"In fact, we are better off than in previous downturns due to the many financial support programs, such as JobKeeper and JobSeeker, as well as mortgage repayment breaks available to borrowers," he said. .
Five years after each of the last economic downturns since the 1970s, housing prices in capitals have increased considerably, according to a PIPA study.
"Some locations performed better than others, mainly due to local economic factors after each economic contraction," he said. "The property has shown its resilience through economic shocks before and we have no reason to think that it will no longer do so. There is no need to panic."
The table below shows the price increases in each capital five years after each recession:
Top suburbs:
Wentworthville
,
Narara
,
goulburn
,
Midland
,
belmont
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