At last, I have heard someone start talking about ‘China Factor’ which cause the rise of the house property prices in Sydney and the rest of Australian cities in the last few years. This factor is greatly ignored in the past.
Property prices also have gone up and up in all the major Asian cities for the last few years. I believe for the next 2 years, property price will go higher but I think the price will start to drop in line with my prediction of ‘economy’s slump’ from 2016 onwards. Relatively, the drop in Aussie housing property prices will be less due to the continuation of strong purchases by the rich Asian emigrants.
Is it sustainable? Ask yourself a few simple questions? How much is the income rises as compared to the rise in property prices? Is it reasonable for a property to keep going up without the GDP growth and job growth? What is the affordability of owning a house (of a crazy price) without a substantial increase in your income? Current ratio of house price to average annual income ($80000 p.a) is about 10 to 1 in Australia. Don’t you think this is crazy! Reality will set in eventually to bring down the price according to my timing Cycle of economic depression that will be triggered in 2016.
Nothing goes up in straight line. Mark my word: Property bubble is forming and it will bust not too long into the future. There is a time to buy and there is a time to sell.
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