Perth real estate put an unstoppable decade long colossal increase in prices from mid-1997 to late 2007.
Then price purchasing power (and real estate prices) collapsed for 14 years, as shown in the green dotted line channel. The green dotted lines on the chart show that each property cycle the PPI had higher highs and higher lows (i.e., property prices became cheaper over time).
The trend broke when the Reserve Bank (with its absolute unchallenged power) issued free debt to help the too big to fail friends by again jacking up the printing press.
Can the other capital cities follow the same path as Perth real estate did? Why not!
On 12 February 2022 we published a research note concluding, “The Sydney PPI in the future will get much, much cheaper than today. This could be achieved by house prices falling, higher inflation, higher interest rates or any combination of these” which is what actually happened! The Sydney property market peaked in February 2022 and subsequently fell.
Authored by QED Realty and BIDsquare.