According to the BIS report, looking at house prices increases around the world, Australia’s house prices have been increasing at an average of 8.1 per cent per year over a period of 55 years.
According to the report, the price upswings lasted on average 13 years.
And the longest one was in Australia, still continuing after half a century, and setting a world record.
Upswings on average lasted 13 years.
The report analysing 47 advanced and emerging market economies shows that Australia has had among the highest average annual rises in property prices around the world.
The only countries ahead of it are Spain, United Kingdom, New Zealand, Italy and Ireland.
“One striking feature of house-price growth is its persistence,” said the report’s authors Gregory Sutton, Dubravko Mihaljek and Agne Subelyte.
“With the exception of Germany, Portugal and Switzerland, advanced economies have seen real house prices growing by an average of at least 6 per cent per year for 40 years or longer.”
The BIS figures put Australia well ahead of the United States where house prices increased 1332 per cent over 47 years, rising at an average annual rate of 7 per cent.
The report also found that short-term interest rates were a surprisingly important driver of house prices, particularly outside the United States.
It revealed that downswings accounted for only 8 per cent of the advanced economy sample and lasted on average five years.
And on the question of whether housing is a “good long term investment”, the BIS says the answer is “an unqualified yes” with real house prices increasing by an average of 7 per cent per annum in the sample of 20 advanced economies.