The Downturn of 2019
In 2014 I wrote this blog post predicting a period of financial instability in 2019 based on the skyscraper index.
It coincides nicely with the completion of ‘the tallest’ residential tower in the Southern Hemisphere – Australia 108 in Melbourne – which at 319 metres, will exceed the height of the current record holder – the Eureka Tower – and unless we see changes to current policy – will mark another period of financial instability.
Following the slowdown in the market cycle in 2018 due to the Royal Commission into the banking sector causing an extreme tightening in lending conditions, not to mention jitters regarding the pending general election in 2019.... All indicators point to further downward pressure in land values into 2019 - and it may not be pretty.
The Sky scraper index is rubbished by a few who have not studied it in full. However, my comments are also based on our expertise of the 18 year cycle - you can find more information regarding that from my business partner Phillip J. Anderson at www.andresoncashmore.com.au.
Following this downturn, we're entering a boom into a 2026/2027 peak and land price lead recession/depression into 2027/2028.
I'll write more detail on this and how you can advantage from it in the next post.