Australia’s Property Boom – Is it Over or Not

Is the Australian property boom over or not? Terry Ryder from Property Observer explained that media stories on the property boom tend to contradict figures released by real estate agents and government bodies.

The media has stated three times in the last year alone that the property boom is over. Yet their claims are often based on the median price for a particular month from a non-reliable source, which is then refuted the following month with more optimistic figures.

The property market has peaked and surged a number of times in the past few months with the most recent peak in May. Therefore, the media has declared once again that the property boom is over. However, Ryder believes that they’re not referring to the property market nationally, but to the Sydney property market and then inferring that it’s the same case for the whole country. This is because Sydney shows continued growth compared to the other cities and has peaked again.

But the property boom being over could mean different things, Ryder said. It could mean that the markets have come to a stop, the prices are not increasing, or people are no longer buying. If these are what the media is referring to, then the property boom is definitely not over yet, said Ryder.

House/unit sales from Jan-Mar 2014 were the highest in the last five years, and even BIS Shrapnel concluded that the Sydney property market will show continued growth in the next two years. Ryder has also analysed sales in Sydney, Perth and Tasmania and believes that the markets will continue to boom.