Australia’s share market collapse this week has reinforced the nation’s property market as being a safe haven when shares take a dive.
More than $160 billion was wiped off the value of the Australian share market in just two days following fears about the US economy and a potential recession. Stocks closed down 3.7% on Monday which is the biggest fall since the pandemic era. At the same time, new figures from CoreLogic show just how stable the Australian property market is.
CoreLogic figures show that national home values rose 0.5% in July, the 18th consecutive monthly increase in home values nationally. During the quarter values are up by 1.7%. CoreLogic says values have consistently pushed to new record highs since November last year.
Despite the national rise, three capital cities did record a decline in median value in the past quarter, although nowhere near as significant a decline as the share market. Melbourne’s values are down 0.9%, Hobart 0.8% and Darwin 0.3%. Perth values increased by 2% during the quarter, while Adelaide is up 1.8%, Brisbane, 1.1% and Sydney 0.3%.
Westpac Private Bank’s inaugural Prestige Property report says prestige property is now considered a critical asset class.
