Jul 6, 2026 – 8.00pmIf history is any guide, Australia’s sharemarket is set to be an unexpected winner from the housing market slump, with falling property prices linked to higher returns on the local bourse over the past 40 years.Research house Morningstar analysed the five housing market downturns since 1980 where national dwelling prices fell by at least 5 per cent, and excluding the global financial crisis in 2008, it found the S&P/ASX 200 Index climbed about 7.5 per cent on average during each housing slump.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Housing downturn to lift the ASX, but bank risks still loom
One upside from a property slump is a potential rally in the sharemarket, but recent tax changes and a heavy weighting of banks could bring that trend unstuck.
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