Guest Scamp1976 Posted January 19, 2009 Share Posted January 19, 2009 Source Property market in free fall | The Australian Property market in free fall Anthony Klan | January 19, 2009 Article from: The Australian THE West Australian property market is being decimated following the evaporation of the resources boom, with values of $1 million-plus properties plummeting 20 per cent and the equivalent of more than two years' supply of homes flooding real estate agencies. In Geraldton, rents have slumped 8 per cent and in the state's northwest fibro shacks that had been fetching rents of $1000 a week are sitting vacant as formerly high-paid mining executives face widespread retrenchment. Real Estate Institute of Western Australia deputy president David Airey said there had been just 85 sales in Perth's affluent western suburbs in the three months to December, down from 150 the previous quarter and 300 at the same time in 2007. "Properties ... purchased as recently as a year ago have been listed or sold below their original asking price," he said. Mr Airey said house prices in the state were expected to fall further as the global financial crisis continued to unfold and mining companies retrenched staff. Adviser Edge head of property research Louis Christopher said Perth house prices were expected to fall by between 8 per cent and 12 per cent this year. "The cause of the falls at the moment is the decline in commodity prices, (the rise in) which is what actually caused the boom in the first place," he said. According to the REIWA, much of the lower end of the market was holding ground, buoyed by a surge in people capitalising on cheaper homes and a tripling of the first-home buyers grant. "Properties priced up to $400,000 in areas popular with first-home buyers have either been steady in price or fallen only very very marginally." In Perth, house prices fell 4per cent in the December quarter, taking the yearly decline to 11 per cent. The median price of a Perth house was $418,000, down from $473,000 at the peak of the West Australian housing boom in December 2007. Link to comment Share on other sites More sharing options...
Guest YellowGecko Posted January 19, 2009 Share Posted January 19, 2009 GREAT post! Australia usually follows the UK eventually. Australia is already in the embryonice stage of a very serious recession, and house prices will be affected even more (% will fall more than in the UK), due to less population. Supply and demand. When people need to sell during thse times, they REALLY need to sell. Bargains to be had nationwide. PERFECT time to move from the UK to Australia. Link to comment Share on other sites More sharing options...
Guest Janeyfloppett Posted January 19, 2009 Share Posted January 19, 2009 Great for buying i guess, but if Australia is heading for a recession just like us it worries me a litte about finding work out there. It will be a couple of years at least before we get out there, so hopefully things will be on there way back up, but employers are likely to employ Australian citizens before poms at the moment, i guess. Link to comment Share on other sites More sharing options...
Mongrel Posted January 19, 2009 Share Posted January 19, 2009 Rudd has just said its going to be tough the same bloke (blair clone ) who said Australia are in great shape, other words he can smell it coming thriough the fan , bhp shutting 2 mines as well as comet (russians ) and a qland coal mine , a lot of the industries are back up to the mines engineering etc so the knock on effect will be big . The article in the wa news did say that the houses up to and around $400 have not dropped by very much ,its mainly the ones on the edge of the coast askin daft money for blocks $900k + for a 300 metre block Mally Link to comment Share on other sites More sharing options...
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