What happens if property prices drop 20pc? Ask New Zealand or Canada

Property markets in New Zealand and Canada have experienced significant declines, failing to return to the record-high valuations observed prior to the COVID-19 pandemic. These market shifts serve as a case study for the potential economic consequences of a 20 percent drop in property values.

Examining the experiences of these two nations provides insight into the long-term impact of such corrections on broader housing stability. The current state of these markets highlights the challenges of recovery following substantial downturns in real estate pricing.