New research by the Property Investment Professionals of Australia (PIPA) has found that house prices increased up to 100% in the five years after the most recent recessions from 1973 to the GFC in 2008. PIPA chairman Peter Koulizos says looking back over the past 50 years, house prices were higher five years after each recession or downturn.
“The research shows that talk of impending property ‘doom’ has never happened in recent history – and those recessions or downturns lasted multiple years rather than a few months,” he says. Five years after the recession of 1973–1975, Sydney median house prices had increased 101%, followed by Perth and then Brisbane, the PIPA research found. The results were similar in the 1982–83 recession and the ‘recession we had to have’ in the 1990s. Koulizos says that over the three most recent economic downturns, there were periods of annual house price falls in many capital cities, but the price reductions were never sustained or prolonged.