CRIBZ Co-Founder Peter Esho was recently invited to ABC News to comment on the property outlook for markets across 2019. He spoke about three range issues summarised in this note, as part of his segment with presenter Lorna Dunkley.
- Real estate prices are coming down from very high levels, particularly when given the context of price movements from 2009–2016. He spoke about the need to keep this in mind when reporting declines. All markets eventually moderate and modest falls are part of a healthy market cycle.
- Real estate prices are not falling in Australia alone. Esho used similar pricing fall examples from markets like Hong Kong, New York, Toronto, London, Dubai and Singapore. He said that all top tier markets have started to moderate and second-tier markets are holding up better because they haven’t seen large price rises in recent years.
- Falls are driven by tighter lending, something central banks and regulators have worked in tandem to achieve. This is different to other market downturns which have been driven by economic weakness or credit prices rising. This should also be taken into context — the downturn is policy driven.
The implications for real estate developers
CRIBZ works with large and reputable real estate brands who have a pipeline of projects across geographies and construction phases. These brands understand market cycles. CRIBZ is helping these brands navigate the current market and perhaps most importantly, prepare for growth once the new property cycle commences.
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