How will the US credit rat­ing down­grade af­fect Ade­laide’s real es­tate mar­ket?

The Advertiser - Real Estate - - Front Page -

WE are in the strong­est part of the global econ­omy, the Asia-Pa­cific, and our strength here, par­tic­u­larly in Aus­tralia, is far stronger than just about any other de­vel­oped econ­omy.

The In­ter­na­tional Mone­tary Fund (IMF) has strongly en­dorsed the Aus­tralian econ­omy to be re­silient through­out the cri­sis.

The IMF said the Aus­tralian bank­ing sec­tor re­mained strong and the Fed­eral Govern­ment’s re­turn to sur­plus was ‘‘more am­bi­tious than ear­lier en­vis­aged’’.

While the av­er­age su­per fund took a 5 per cent hit from the share mar­ket slump re­cently, res­i­den­tial prop­erty in Ade­laide has been ex­tremely re­silient, with many sub­urbs record­ing growth over the past year.

As a re­sult, it is ev­i­dent that in­vestors have re­turned to the prop­erty mar­ket, seek­ing as­sur­ance back in trusted bricks and mor­tar.

This mind­set is likely to keep Ade­laide’s real es­tate mar­ket re­silient and stop us from ex­pe­ri­enc­ing such falls that have been seen in prop­erty mar­kets through­out the US and Europe.

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