The rise and rise of property markets across Australia is delivering tangible benefits for the nation. While mainstream media tends to characterise rising prices as a crisis which needs urgent government action, an escalation in property values has more positives than negatives.
There has been a big boost to household wealth created by the boom. This generates the confidence which encourages people to spend, creating economic activity and jobs.
Many Australians see their homes and/or their investment properties as the basis of their wealth and the cornerstone of their retirement. The rise in values means more people will be able to fund their own retirements based on the value of their properties.
First-home buyers have been leading the market in the past 12 months and young Australians who have bought a first home will be happy about the rise in values.
When people are out there buying real estate, businesses boom and jobs are created. The sale of a home generally means two households are relocating. And that process creates business for real estate agencies, buyers’ agents, valuers, law firms, building and pest inspectors, removal companies, tradespeople and businesses that sell furniture and household goods.
Terry Ryder – April 2021