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Turnbull worried about global economic slump

Discussion in 'The Economy' started by Simon Hampel, 28th Apr, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  2. Chris C

    Chris C Well-Known Member

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    Does anyone think we will see an significant property prices drops over the next 18 months in Australian capital cities?
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I think if inflation stays high we may well see another couple of rate rises - which will have a significant negative impact on real estate prices I think.

    Especially if our economy starts to slow down (which is possible even with high inflation) and unemployment starts to increase, business investment and confidence drops further, lending practices remain ultra-cautious, etc etc.

    However, working in favour of real estate is a severe shortage of supply in many areas and an extremely tight rental market which will see rents soar over the next few years.

    Hard to tell really.