Real Estate Agency, Savills, has come up with a new research that found that the value for the world's residential real estate stock is at $US162 trillion.
According to Commercial Real Estate, despite the fact that home prices in Sydney dropped by an unprecedented 3.1 per cent in the quarter ending December, the residential property market still gets interest globally. It looks like real estate is more interesting than gold.
The Head of Savills world research, Yolande Barnes said, "The total value of all the gold ever mined is approximately US$6 trillion, which pales in comparison to the total value of developed property by a factor of 36 to 1." She added, "Real estate is the pre-eminent asset class which will be most impacted by global monetary conditions and investment activity and which, in turn, has the power to most impact national and international economies."
Moreover, according to Commercial Real Estate, the research by Property Council of Australia found that Australia's real estate industry was greater than the mining industry, home ownership, or financial services. The Australian real estate industry has doubled its impact to the Australia's GDP in the last ten year to $182.5 billion-worth, which equals to 11.5 per cent of Austrlia's gross domestic product.
So what does the global residential real estate figure stated at the top imply? According to Commercial Real Estate, it shows the reality that the global economy could still be dominated by the west. China accounts almost 20 percent of the world's population while its property market comprises to nearly a quarter of the total value. Furthermore, about 21 percent of the total residential property values of the Chinese are in North America. What is actually surprising to western people is despite that, it's only a home to five percent of the population.