Consider the unique situation in Australia. We have seen Sydney property prices finally come off the boil, some would say the bubble has burst, but there is no clear evidence of that. Auction clearance rates have plunged to sub 50% even with Chinese buyers lurking in the wings, interest rates at historic lows and unemployment figures improving. These conditions normally lead to higher property prices so something bigger is taking place here.
Europe, excluding Germany, is struggling to stimulate their economies even with interest rates near zero percent. The heightened sense of terror and fear will only create further difficulties with stimulating growth and confidence. Perhaps we will enter a period of global recessionary decline in asset prices. If that is the case it is hard to imagine Australian property remaining immune to global developments.