Finally, it is time to avoid property in places such as Singapore, Hong Kong, Major cities in China, major cities in Australia which include Sydney and Auckland etc. I expect one of the biggest drops in property prices especially in Auckland and Sydney. Both Auckland and Sydney house prices are overvalued by more than 40%. They are more vulnerable now. No asset will go straight up continuously for number of years. Any further rise is property prices could lead to another crisis. Still some market players have not learnt lessons. They think this time is different. Some Japanese investors also thought like that in the past.
There are people they can get jobs in Auckland but they cannot afford to rent. Higher rent is slowing down the economic growth as well. Properly investments along with gold are two of the most unproductive investments in the world. These types of investment have bought different types of crisis such as credit crisis and banking crisis in the past. We are going to repeat that by thinking this time is different. Just like stocks and commodities there will be time everybody will try to dump properties in the market. History will repeat in a different manner. It is time to become big bear on Auckland housing market. Easy money will not last for ever.
http://www.stuff.co.nz/business/7594...ice-comparison
Kiwi house prices are the highest in the world compared to incomes, Fitch says
NZ tops world in Fitch house price comparison
My ideas are not a recommendation to either buy or sell any property, security, commodity or currency. Please do your own research prior to making any investment decisions.