Australian Property Chart of Shame - Epic Failure of The Australian Property Bears

Thanks for sharing here mate,

So where did you get the graph from ?

 

Cool graph. Thanks Shadow

 

Haha this is great. Didn't realise kiyosaki called us a bubble too..

 

Anyone of those charts if it was a ASX,Listed company and I had a few with charts like those about 7 weeks ago,would have thought let's just pay the tax and sit on the sidelines ,same could be said for property as every market always overshots the value range..imho..

 

The source data is from Residex. I created the charts using Excel.

 

Hi Shadow,
Where in Residex can you pull these figures i.e is this a paid service?

 

But surely property cant keep doubling every 10 years! I have heard this for the last 30 years so it has to be true now doesn't it?

 

They publish the figures every month. The latest report is here... http://blog.residex.com.au/2015/06/24/market-update

I just collect the figures each month and update my chart.

You can probably get the last 5-6 years of data from the monthly blog posts.

The older historical data going back to the 1980s used to be available for free on their site, but they took it down some years ago and made it a paid service.

However if you know your way around the wayback machine internet archive, you can access old versions of the Residex site there and pull down the old historical indices for free.

 

ON AVERAGE property takes between 7 and 10 years to double in value.
What we are seeing right now in Sydney and to a lesser degree in Melb is really just the cycle in progress....in the fast value rising section of the cycle.
Between 2015 and 2025 you will see a big slow down..maybe little growth of a percent here and there.
Interest rate rises will put the brakes on even harder.
The only game changer will be a massive influx of immigrants with loads of income/cash - more price rises,
OR, loads of new land released - more supply and softening of prices.

 

Thanks for posting the chart and comments. I'd forgotten about Harry Dent who was promoting a book in Australia in early 2014. Robert Kiyosaki's reputation is questionable. See what John Reed has to say
http://www.johntreed.com/Kiyosaki.html
There are other similar comments. Dent and Kiyosaki sell books and are very good at it. I've asked my library to put the books in the fiction section.

 

Hey @Shadow is it time for an updated graph? Pretty please

 

That graph is frightening and reminds me of the one for the share markets in 2007. I'd say sydney has overshot and will correct by about 15%.

 

How does this graph look nowadays?

 

good call on the 30%, looks like thats gonna happen if not already happened in certain pockets

 

Perhaps Shadow could update his chart with this? Perth.

 

damn, perth been hammered

 

So Shadow should really rename his chart. The Failure of the bears. Except the WA bears. They were right.

 

Syd ain't far behind.

 

Is it just me or does that chart make anyone else want to buy in Perth. On average you can buy a house there today for 20% less than 5 years ago.