Recent events may have sparked some questions in relation to investing in the residential property market, however here’s some positive data in relation to historical post crisis trends in the national property market shared recently by Performance Property Advisory:
- In 1982 Australia experienced a short recession and the sharemarket fell -13.9%. However, the national property market rose +7.8%, and then went up the following years (+5.8%, +12.9, +10.55)
- In 1990 Australia entered a recession and the sharemarket fell -17.% but the national property market rose +4.1%, and then continued to rise in following years (+1.5%, +4.8)
- In 2001 the sharemarket fell -8.1% following the September 11 terrorist attacks & the dot com crash. However, the national property market rose +13.9%, and then continued to do so (+19.4%, +16.2%)
- Most recently the GFC in 2008, caused a drop of -40%. Consequently, the national property market rose +7.5%, and kept rising in following years (+1.9%, +13.7%)
Whilst no financial crisis or economic downturn is identical, this data shows that our current health crisis doesn’t necessarily equate to a drop in the residential property market.