We’ve all heard about skyrocketing Aussie house prices.
It’s led to regulators trying to cool the market and talk of the dreaded “b” word.
A new report shows that Australia has had the sixth highest rise in annual property prices in the world over the last five decades.
Switzerland-based Bank of International Settlements (BIS) researched the impact of short-term interest rates on house prices across 47 countries with advanced or emerging economies.
The Swiss bank considered if housing is a good long-term investment in these economies and the answer was a resounding “yes”.
According to the report, Aussie house prices have surged 6556% in since the 1960s with an average increase of 8.1% per year.
Housing prices rose an average of almost 7% each year across 20 advanced economies.
Spain was the leader (+9.9%), followed by the UK (+9.3%), New Zealand (+8.8%), Italy (+8.8%), Ireland (+8.7%) and Australia.
“One striking feature of house-price growth is its persistence,” said the report. “With the exception of Germany, Portugal and Switzerland, advanced economies have seen real house prices growing by an average of at least 6 percent per year for 40 years or longer.”
Source: ABC News