In this video, I would like to explain to you what it is that makes housing markets boom.
To find out, we’ve come to Canberra. The reason that we came to Canberra to find out what makes markets boom is that during 2008, Canberra’s median house price was highest in Australia. It was higher than Sydney or Melbourne. Right now, Canberra’s median house prices is about half of that in Sydney and three quarters of that in Melbourne.
So, what happened in 2008 that made this boom so much?
Well, what it was is a huge increase in the numbers of public servants working in Canberra. And that meant that there was a housing shortage and so housing prices started rising. That led to investors buying properties in Canberra as well and that added to the boom.
And then, developers came in and started building huge apartment blocks which then led to an oversupply and the boom ended.
So, you can see what leads to housing market booms firstly is, people moving in. And what ends the booms is developers moving in.
So, you can look at any market around Australia and see which stage that particular market is that and you’ll know whether if it’s about to boom or not.