"So, other than lowering debt in real terms for current property investors only, how exactly is hyperinflation good for the property market??"
because your property value increases with inflation or hyperinflation as well. Mean while your debt stays the same.
Simple analogy, this is a true story, an old man lived down the road from me, he bought a huge double brick californian bungalo overlooking Fairlight beach and 40 baskets on Sydney Harbour. He paid $75k 20 years ago. He said he wished he'd never bothered with principle payments as inflation as well as value appreciation associated with the suburb had taken care of the property which would now be worth above $1.8M - the debt he can take care of with cash savings if he wishes now.
The above is a 20 year scenario, hyperinflation would be a quicker realisation of debt to equity ratio reduction.
