The real estate industry has been in a state of crisis for decades, with property prices dropping steadily in recent years.
But the downturn has been so severe that the number of properties sold in the last year alone has been cut by nearly one third.
With no sign of the market stabilising, some are warning that prices will rise again.
In an exclusive interview with BBC Radio Newcastle, real estate expert Chris Williams said the real world is about to change.
“I’m predicting that prices are going to go back up, and I think it’s going to be quite dramatic,” he said.
“The price of land is going to rise, and the price of buildings are going be driven up.”
Williams said it was important to remember that a property is not just a physical piece of property, but a property can also be a social asset.
“You have to invest into those properties because if you don’t you are going nowhere.””
We are looking to invest in those properties, and that is going be very different to the way the real economy works now,” he explained.
“You have to invest into those properties because if you don’t you are going nowhere.”
You are investing in a property, and when you sell that property you get a social benefit. “
It’s a social investment.
When you buy an apartment, it’s a building.” “
When you buy a building you are buying a property.
When you buy an apartment, it’s a building.”
Williams added that the average house price in Newcastle has fallen by 20 per cent in the past two years, but that is only half of the decline in the property market.
“Our house prices have fallen by 40 per cent,” he revealed.
“So it’s been a real struggle to get people into the property industry in Newcastle.”
If you would like to comment on this story or anything else you have seen on BBC Capital, head over to our Facebook page or message us on Twitter.
