In this research note we depict the Purchasing Power Index of the median Canberra property (PPI) over time. This is one of the indicators we use to analyse real estate trends.
The PPI for the most recent calculation period being December 2022, is by default set to one (1).
In the graph, the PPI has progressively become exuberantly expensive over time, much like the other capital cities.
The green dotted lines on the chart bound each property cycle with the PPI making lower highs and lower lows (i.e., property prices became extremely more expensive over time).
In technical analysis, this is a fallen wedge which may be interpreted that the PPI will increase in the future, and this may be achieved through further house price falls, higher inflation, higher interest rates, or any combination of these.
Authored by QED Realty.