Australia has ranked 5th in the world for capital growth in the recent Global House Price Survey.The Economist's global property report analyses the change in property prices in 20 property markets around the world. Prices are compared over a 12 month period and also since 2007 to gauge the impact of the global financial crisis (GFC).
While the GFC had a severe impact on the property market in many countries, Australian property has recorded growth since 2007. The United States property market recorded a loss of value with minus 27.6% growth and Ireland a staggering minus 45.2% since the GFC. Over the same period, property in Australia increased in value by 18.1%. This places Australia 5th out of the 20 countries surveyed. Only Hong Kong, China, Singapore and Canada were placed ahead of Australia.
Although gains over 2011 were not as strong, property investors who see their investment as a medium to long term strategy are confident. This confidence is supported by the Housing Industry Association which reminds investors of 3 solid indicators for capital growth: a shortage of 229,500 properties (June 2011); low vacancy rates for rental properties pushing up rental income and strong mining and business investment.
John Edwards, Residex CEO, has commented that 'given the problems and the position of global economies, Australia has done well by comparison and in global stakes it remains one of the few bright spots'.
This sentiment is reiterated by the Prime Minister, Julia Gillard, who has described the Australian economy as a 'pillar of strength' in the world.
Speak with a ParkTrent professional today about how you can benefit from the strong Australian economy through property investment.
Call 1800 652 224 or email us via contact@parktrent.com.au
