Rising unemployment in the country has been a major concern, after the country reached the 6% unemployment rate recently. Major players such as Toyota, Ford and Quantas have been forced to cut jobs to address the rise in operational costs over the past 6 months.
Desite these alarming changes to the economy, the property market has performed favorably in the past years, relying much on the low interest rates and high property values. Data shows that unemployment was at a high of 10.9% in 1992, making us accept the current unemployment rate without much fuzz.
So how important is the unemployment rate in the residential sector? It is very important, in fact it is a major factor. We’ve come to terms with the fact that the unemployment rate will fluctuate primarily because of economic conditions, But to see the big picture, one must also take into account the current interest rates, inflation and unemployment data.
Read more about this on the Property Observer website.