Is there a silver lining to falling property prices?

Welcome to Smart Private WealthLearning CentreInsights


Is there a silver lining to falling property prices?


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. Authorised Credit Representative of Outsource Financial Pty Ltd 384324. Shannon Smit Credit Representative No 533133 is a Credit Representative of SMART Business Solutions Mortgage & Lending ACR 527754 Pty Ltd ACN 611 647 922.
Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product. View our Privacy Policy.

Get in touch

Our holistic approach to taxation, accounting and financial planning means we bridge the gap in the client experience, eliminating the frustration from delays that are often inevitable with multiple stakeholders involved in the lending process.


LET'S TALK MORTGAGES LET'S TALK MORTGAGES



21 Feb

Market Wrap - January 2024

A rally in the second half of the month helped global share markets generate solid gains in January, extending the rally from November and December.


READ MORE READ MORE
7 Dec '23

SMART Life - Issue 15 - Summer 2024

Recent research shows why giving to others can provide us with a mental boost. We feel happier when we have a choice in how and who we give, and when we see the results of our generosity.


READ MORE READ MORE
20 Sep '23

SMART Life - Issue 14 - Spring 2023

Investment markets have shown a lot of enthusiasm for AI and Chat GPT technology. AI productivity gains could boost economic growth and share market performance across the world.


READ MORE READ MORE
20 Sep '23

Market Wrap - August 2023

The release of resilient economic data and sticky inflation readings indicated that official interest rates might need to be raised further in key regions, or at least remain high for longer than was previously anticipated.


READ MORE READ MORE
21 Jun '23

Market Wrap - May 2023

Investors remained focused on the release of inflation data and how ongoing pricing pressures might affect monetary policy settings in key regions.


READ MORE READ MORE
21 Jun '23

Bianca Carroll wins Emerging Adviser of the Year

Bianca Carroll's dedication and commitment to excellence have culminated in her being recognized as the Emerging Adviser of the Year, a remarkable accomplishment that is a testament to her perseverance.


READ MORE READ MORE