Residential-Property-Resilience_FE_December

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Residential Property Resilience ABS 6416.0 House Price Indexes: Eight Capital Cities 1986 - 2012 $600,000

7 consecutive interest rate rises from Oct 2009 to Nov 2010, short term rapid growth

$550,000

GFC brought property market o

Upward trend in Median Dwelling prices, low interest rates

Increasing rental yields & falling property prices

$500,000 Record low interest rates (3%) saw rapid short term growth

$450,000 $400,000 $350,000 $300,000 $250,000 $200,000

Interest rates peak at 17.5% in 1989-90 led to stagnate growth during this period

From 1993-98, interest rates fell to 4.75%, the lowest in 5 years

Resource boom & WA property

1991 economic recession & falling interest rates from 11,50% to 5,29% (over a 2 year period) Black Monday, October 19, 1987 (41.8% capitalisation) had minimal impact on property sector

$150,000

Jun-1986 Dec-1986 Jun-1987 Dec-1987 Jun-1988 Dec-1988 Jun-1989 Dec-1989 Jun-1990 Dec-1990 Jun-1991 Dec-1991 Jun-1992 Dec-1992 Jun-1993 Dec-1993 Jun-1994 Dec-1994 Jun-1995 Dec-1995 Jun-1996 Dec-1996 Jun-1997 Dec-1997 Jun-1998 Dec-1998 Jun-1999 Dec-1999 Jun-2000 Dec-2000 Jun-2001 Dec-2001 Jun-2002 Dec-2002 Jun-2003 Dec-2003 Jun-2004 Dec-2004 Jun-2005 Dec-2005 Jun-2006 Dec-2006 Jun-2007 Dec-2007 Jun-2008 Dec-2008 Jun-2009 Dec-2009 Jun-2010 Dec-2010 Jun-2011 Dec-2011 Jun-2012 Dec-2012

$100,000

Source: ABS 6416.0 House Price Indexes: Eight Capital Cities December 2012

ALL RIGHTS RESERVED 2013 @ FUTURE ESTATE GROUP PTY LTD.

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