Property is considered a staid asset class, with returns linked broadly to inflation. That's mostly true. But property purchases are typically financed with debt, meaning that equity owners tend to have a much less stable rise. In addition to this, the standard property valuation technique of capitalising net income can alter reported valuations by far more than the changes in underlying income suggest as capitalisation, or 'cap', rates tend to rise when income is falling, creating a magnifying effect.
Let me explain with a simple example.