Historically, real estate has been a stable and safe investment class.
Since 1974 Perth has seen steady growth over the years with only a couple of periods of retractions in price. These events are part of a normal market cycle and as you can see in the graph above supplied by REIWA, our last significant price correction was in 1989.
Following that event we saw steady to strong growth until 2008. We all know the story of flat to negative growth from that point.
Using history as a guide we know that after recessions we enter a period of strong growth.
I believe we are now entering that period which will be magnified by our extended period of price retraction since 2014/15.
Prices are now severely depressed and we are now entering a new cycle of growth with strong fundamentals including record low interest rates, high government spending and an improving economy.
All indicators are pointing towards a strong recovery during 2021 and beyond.