Is there a silver lining to falling property prices?
Welcome to Smart Private Wealth • Learning Centre • Insights
Welcome to Smart Private Wealth • Learning Centre • Insights
With economists predicting that residential property prices could fall as much as 20%, Australia’s long-running property bubble may
have finally burst. But with adversity comes opportunity.
CoreLogic data shows that capital city house prices are down more than 7% as at October 2022 from the April 2022 peak. Sydney is leading the
way with a drop in value of more than 10% since peaking in January, with Melbourne down 6% since February’s high. Home units in capital
cities are holding their value better than houses, with prices down 4%.
The regions are also showing resilience, with prices down less than 5%. For property owners who’ve become accustomed to price
growth, these price falls are a stark reversal. Increasing gross rental yields. Falling property prices combined with rent hikes means
the average income earned from residential property, as a percentage of property values, has risen.
Important information: This document contains general
advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial adviser
before making a financial decision.
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