Home Market Insights Australia’s house prices up over 6,500% since the 1960s

Australia’s house prices up over 6,500% since the 1960s

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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”.

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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

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