The year 2020 will always be remembered as the year dominated by the emergence of COVID-19. We of course wish everyone the speediest recovery possible.
But, the overbearing reports of COVID-19 in the news has masked the once again over zealous sensationalism from some of the biggest names in Australia regarding our local property market and it’s pricing outlook.
On the 13th of August this year, the Chief Economist and Head Of Investment Strategy at AMP made comments and had articles written about his view. He noted - ‘I expect further falls ahead as high unemployment, the depressed rental market and the collapse in immigration take their toll’. Articles went on to say ‘In Melbourne, where a second wave of COVID-19 has already led to an economic shutdown, forecasts for falls will be larger than the national average at 15-20% in total. Many other banks, financial institutions and economic experts had similar negative forecasts painting a doom and gloom picture for property.
Fast forward only a few weeks and the vernacular been flipped on its head. Mid November saw the National Australia Bank revise it’s forecast from a negative 15% decline in house prices to a now 5% growth in the next year. Westpac were similar but saw even bigger rises. They predicted a 10% slide originally that has now been changed to a 15% growth over two years following a 5% increase in 2021 making it 20% higher or a total change in prediction of 30%. I could keep going but I assume you get the picture. I mention these quotes and predictions not to put people or companies down but to once again highlight the fact that many or most commentary regarding property heading in a negative direction is always proven wrong over time.
Australian property is the greatest single investment in the world. Nowhere can you find such a proven brilliant and consistent performer. For everyone that tries to talk down Australian property they are ultimately defeated by economics. For everyone who tries to influence Australian property by using their position in a negative way they are ultimately defeated by economics.
For everyone who decided not to make a move because of the experts and their comments in recent times we can again take solace that the actual always defeats the commentators and we can re affirm that property rules, property will always rule and waiting another day to invest or re-invest is simply a day too long. Just now proven again.
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