Sharemarket Falls vs Australian Property: What Can a Property Advisor Learn From Past Crises?

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How have sharemarket falls compared with Australian property performance?

At the time of writing this, the share market has fallen approximately 35%, with the ASX 200 dropping from 7,162 points down to 4,546 points within the last 40 days.

The pandemic that has caused this crash will pass, and the economy will recover.

No financial crisis or economic downturn is identical, but we thought we would look at the five most recent crises, review the share market movement and consider what the corresponding effect was on the national property market from a property advisor perspective.

What happened to Australian property during the 1972 recession?

In 1972, Australia experienced a short recession. The sharemarket fell -23% in 1973 and -27% in 1974.

While in 1973 the national property market rose +39%, it then went up in the following years by +24%, +24% and +20%.

What happened to Australian property during the 1982 recession?

In 1982, Australia experienced a short recession. The sharemarket fell -13.9%.

During that year, the national property market rose +7.8%, and then went up in the following years by +5.8%, +12.9% and +10.55%.

What happened to Australian property during the 1990 recession?

In 1990, Australia entered quite a severe recession. The share market fell -17.5%.

During that year, the national property market rose +4.1%, and then in the following years rose +1.5% and +4.8%.

What happened after the September 11 attacks and the dot-com crash?

During 2001, we had the September 11 terrorist attacks and the dot-com crash. The following year, the share market fell -8.1%.

During that year, the national property market rose +13.9%, and then in the following years went up +19.4% and +16.2%.

What happened to Australian property during the GFC?

Most recently, we had the GFC in 2008. That year, the sharemarket dropped a whopping -40%.

During that year, the national property market rose +7.5%, and then in the following years went up +1.9% and +13.7%.

Does Australian property always rise when the sharemarket falls?

As you can see, in every recent crisis reviewed above, when the Australian share market fell, the national property market rose.

However, the impacts of each economic downturn are felt differently across the capital cities and regional towns of Australia. That is why, when building our strategies, we always buy into markets that show value and bring diversification into the portfolio as soon as possible.

A property advisor should not assume every market will respond in the same way. The key is to understand where value exists, how different regions are positioned and whether the selected asset can perform through changing economic conditions.

Why are cash buffers important during market downturns?

As part of our investing strategy, we anticipate these events. They are part of the cycle, which is the reason we advocate cash buffers and why these are so important.

Cash buffers give investors the ability to hold quality assets through volatility rather than being forced to sell at the wrong time. This is especially important during periods when income, employment, rents or lending conditions may be under pressure.

How can a property investment advisor Sydney team help during uncertainty?

A property investment advisor Sydney team can help investors make decisions based on data, market cycles and long-term fundamentals rather than short-term fear.

During volatile periods, the role of advice is not simply to encourage buying or selling. It is to assess cash flow, risk, diversification, debt levels and the quality of each asset within the broader portfolio.

What role do property investment agents play in volatile markets?

Property investment agents can help investors identify markets and assets that are supported by long-term fundamentals, rather than reacting only to current headlines.

This matters because economic downturns do not affect every location or asset class equally. Some areas may weaken, while others may remain resilient or even show value because of affordability, supply constraints or stronger local demand.

What should investors remember before making decisions?

This crisis will pass, and the economy will recover. Our business is here to assist people in making good decisions during this time and into the future.

The right property investment services should help investors understand the data, prepare for risk and remain focused on long-term outcomes rather than short-term market noise.

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