What to expect in Australian property market?

In a wide-ranging interview, Wealthi Co-Founder Peter Esho talks to Malaysia’s Business Radio BFM 89.9 about the Australian property market amid the rising interest rate environment.

According to Peter, “It’s important to put things into context. We have had ultra-low rates the past two years not only in Australia but across the globe. The other thing to remember is that every time central banks act on interest rates, that will have a corresponding reaction on people’s sentiment.”

Regarding the global markets’ sensitivities to data, Peter says, “The next 10 years will be very different from the past 10 years. The amount of debt, leverage and monetary stimulus over the pandemic period was huge. And that has to be reversed. And it may be painful for some sectors.”

He reiterates that as interest rates go up different asset classes will be impacted differently and people’s sentiments will continue to fluctuate in the process.

With a new federal leadership in Australia, Peter says the business sector remains hopeful that trade relations with China will improve.

“Despite the political rhetoric I believe there is a sense of hope among businesses and business owners that we will see better trade relations between Australia and China.”

At the same time, Peter highlights the increasing importance of commodities – particularly those used in agriculture and food production.

“Commodity prices may not cool down soon. This is because agricultural commodities will be in big demand as the whole world come to terms with food production,” Peter says.

If you would like to discuss the Australian property market in more detail, please reach out to the team to organise a time to have a conversation about how Wealthi can help you build a successful property portfolio.