Update- Residential Property Prices
The Bank of International Settlements published its 84th Annual Report back in June.
It is largely theoretical but one piece of research that stood out was in Chapter IV on debt and the financial cycle and the impact of an ageing society on residential house prices.
They present a chart over the next 4 decades which only has one developed nation (Australia) showing a positive residential house price increase.
Australia is also shown to have had the biggest benefit from demographics over the 40 years since 1970.
At worst the chart forecasts up to a 3.5% per annum decline in property prices in developed countries as a result of negative population growth (due to more deaths than births) over the next 4 decades.
This is certainly plausible but the question that immediately springs to mind is how then would residential property prices be impacted as governments modify immigration policy to permit more of the middle class from developing countries to enter?
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
28th-November-2014 | 
