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The future of property in Australia looks bright

Property in Australia has been booming for a number of years making for high house prices, however if the property market crashes this will make for much more affordable investments.

Regardless of what happens to the market in Australia, its future looks bright whichever way you look at it.

Sydney and Melbourne's markets have experienced a particularly good boom in recent years, which has seen the property cycle mature in Australia.

The reason for such a strong market presence is largely due to the fact that Australia has a fragmented property market.

As one of the country's property market fragments, the Sydney market displayed a high performance between 1996 to 2004, which was helped in part by the Olympic Games.

After this the property market in Sydney corrected itself, meaning that in regions where the property values fell, they flowed slowly downwards instead of on a sharp decline.

In this way, it's difficult for the overall Australian market to have a succinct 'crash' due to its different fragments and Australian property is almost constantly an attractive investment.

The Gold Coast experienced something of a crash when there was too much developer stock on the market, prices fell and created a lot of cheap property opportunities in this popular holiday destination.

Another reason for such a strong market in Australia is due to its strong population growth, which is fuelled by a high immigration rate. This is part of the reason why Australia is growing at one of the fastest rates as compared to nearly any other country in the world.

Other aspects, including a healthy economy, business and consumer confidence and a culture of home ownership are helping to ensure that the property market is strong.

Smart Company has recently said that around 70 per cent of those living in Australia own their own homes, which is in sharp contrast to other overseas markets.

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