The new normal. Which is never before seen prosperity and on top of that this will continue to be in a more sustainable fashion than previously experienced.
As we suggested, the US and global stock markets have been recovering nicely, and any hiccup to property auctions or buying interest in Australia will be very brief to non-existent. While the Chinese investment interest has moderated, for the time being, it may well return at any moment. Meanwhile, European, Indian, and other Asian perceptions that Australia remains a good place to live and also relatively cheap continue. Foreign purchases are therefore likely to remain firm.
Domestically, it remains the entrenched case that not a lot, of substance that is, is happening. The Joyce saga will run its course, but regardless of his leadership status, and he has served his country well, the political landscape will remain largely static.
The economy itself is likely accelerating as we speak. Wealth is becoming ever more evident from trying to get a table in a nice restaurant to the number of luxury cars on our roads. There is no doubt that the nation is doing well. This does not of course, mean all sections and regions are booming, but certainly, the interest among those doing well is only going to increase in terms of property purchases for several years to come.
This is building pressure, overlaying the fact that more people than we might think have delayed purchasing their first home and/or investment properties, due to all the dire warnings from various banks, regulators and commentators. These are the same people that were of great dis-service to everyone over the past decade as property prices in Australia accelerated. Just as was the case then, in the main today, most people steadfastly believe it would be impossible for Australian property prices to accelerate from their currently seemingly lofty levels.
Yet, this could well be the case. Markets of all kinds often do what no one expects. The pressure of delayed purchase intentions is reaching a crescendo breaking into action point. A very strong property market from current levels seems the only possibility out of the current situation.
All the time, the fundamental economic situation around the world and across our own economic region, as well as domestically, continues to improve.
Think, bottom of the future range.