New Core Logic figures show that national dwelling values fell 4.8% in 2018, which has been the largest decline since 2008.
The Sydney property market fell by 8.9% and Melbourne by 7%. Brisbane was the capital city with the lowest fall in 2018, decreasing by only 0.2%. However, the stand out is Hobart, with housing values increasing by 8.7%.
What this highlights, is the cyclical nature of the property market and the need to have an eye on property with a long-term view. This is why we recommend purchasing and holding property as the lowest risk approach to investment. If you can hold the property for at least 10 years, you will weather market cycles and downturns.
Purchasers run into trouble when looking to make a quick buck through property and having to sell too soon. The property has not had a chance to grow sufficiently in terms of capital gains and timing the market becomes an important factor.
Our property education partner and Chairman of the Property Investment Professionals of Australia (PIPA), Peter the Property Professor Koulizos, illustrates that the recent property downturn is not a cause for concern if you take a long-term view to property.
