How Property Cycles Work | Ep. 62

In this episode, we discuss how property cycles tend to work, with a special mention on the Auckland Property Market. Property cycles are arguably one of the most important considerations when investing in property. However, they are very hard/impossible to predict. 

One of the key takeaways from the show is that the property cycle is not the same as the economic cycle. Where shares tend to fluctuate widely in value based on the economic cycle, this is not the same for property. 

New Zealand's property cycles tend to operate in spurts. When the property market heats up, property prices will leap for a few years, and then flatten out for a few years. When the next property cycle comes, property prices will leap again for a time, before flattening out again. 

This can be seen by looking at any graph of a region's median house price over a period of 20+ years.