Both USA and EU have reset their economies to large extent.
As they recover Asia will benefit and grow at a higher rate
And the AUD will drop significantly, and this will help us out big time in terms of competitiveness.
I don't see property prices rising in line with the past.
However what I do see coming is two fold. Rents increasing significantly in all suburbs within a 30km radius of major cities (ex Hobart) but property prices stagnating or rising in line with inflation.
A low aud will tighten the property market as those who own will ride out higher interest rates (still historically low) and play the yield game for a while.
From a macro point of view I think Australia is lucky that the USA and EU are starting to show green sprouts of recovery as an elevated AUD is killing us by a thousand cuts.
