In the latest report from BIS Schrapnel, Australia, due to its strong population growth and housing demand will continue to show strength in the face of the global financial crisis. Meanwhile our overseas counterparts are suffering a domino-effect econonomic downturn.
“The US, UK and parts of Europe and Japan are being caught with over-investment, a collapse in property prices and bank balancesheets, problems of bank insolvency and weakening construction, which will mean periods of declining growth for these regions.”
With Rudd’s fiscal stimulus package and continued population growth, demand for property will likely strengthen over the next 3 years.BIS Schrapnel, Australia’s leading forecaster agrees.
“…after the current shock, prices and construction will rise, not fall.”
Yes, in the short term we have seen and will continue to see some businesses tightening their belt with layoffs and wage reductions but the health and strength of Australia’s economy will prevail.