Australians favour property over shares
Our neighbours have apparently taken a dislike to shares as the ASX market suffered a 43% decline through 2008 – and now view property as a more attractive investment option.
An article from The Australian quotes an online survey by mortgage broker Loan Market Group saying that 40% stated that their investment priority was to property as compared to just 6% stating a preference for shares.
Clearly the incentives offered at both state and federal have been seen a serious motivation and this was reflected in a similar online survey late last year as the Unconditional blog highlighted that “Australians demonstrate property market confidence in face of economic storm“. It will however be very interesting to see what happens in the second half of 2009, as these short term incentives are due to be withdrawn on the 30th June 2009.
As yet the Australian property market has not seen the scale of volume falls witnessed in NZ or the scale of property price falls witnessed in the US and UK – it will be very interesting to see how 2009 plays out for the Australian market, especially as our two economies are so closely itertwined and Australians are active in the NZ property market.