Leading Harvard economist Harry Dent has warned he believes Australian property prices are set for a huge fall.
Dent is a Harvard MBA graduate, a Fortune 100 consultant, a New York Times bestseller, and claims to have correctly predicted “nearly every major economic event in the past three decades including the 90s recession, the decade-long bull market which followed it, the dot-com bust, the 2008 meltdown and even the 2016 election of Trump – all months and even years in advance”.
Appearing at an online conference titled Global Crisis Summit this weekend, Dent explains, “we are about to see 25 to 30 trillion dollars wiped off the stock market in the next few weeks before the US election … The smart money is shorting the market. The economy is over stimulated. It can’t get back up. This crash will be bigger than the great depression”.
All are predictable doomsday scenarios, however, he warns that although real estate appears relatively steady, this won’t last.
“Real estate is strong now because the Chinese are panic buying but that will turn around as China’s stock market crashes because of the zombie companies who won’t be coming back to work post the virus.
“Real estate will be the last to fall after the stock markets of the world crash. Hong Kong and Australia have the most overvalued property prices in the world, followed by Canada, the UK and US.
“It’s going to be a blood bath for property globally. Start selling now because real estate crash will be at the heart of the downturn.”