Guest The Pom Queen Posted December 25, 2012 Share Posted December 25, 2012 I am sure this has been said every year since we arrived. It's never happened. AUSTRALIA'S love affair with property is about to be tested amid predictions prices will plummet by as much as 60 per cent, with capital cities hardest hit. That’s the Armageddon-esque warning from leading US real estate analyst Jordan Wirsz, who believes Australia is heading towards a property bloodbath as the global economic downturn spreads to China and eventually here. Mr Wirsz advises Fortune 500 CEOs and fund managers on investing in real estate. He predicts that a flood of properties will begin to hit the market in Australia from next year as investors scramble to bail out, leading to a property crash of magnitude the country has not seen before. “Right now is not a time to be buying real estate in Australia," Mr Wirsz said. "The market has slowed substantially but residential prices are likely to fall up to 60 per cent, possibly even more, within five years." The outlook is even grimmer for land investments, which Mr Wirsz said are more speculative and will plummet by as much as 80 and 90 per cent in value. Commercial property will also take a hit in line with the residential sector shedding at least 50 per cent of its value. Read more: http://www.news.com.au/money/property/bloodbath-to-hit-australian-real-estate-property-analyst-jordan-wirsz-says/story-e6frfmd0-1226248472949#ixzz2G2M2E5H3 Link to comment Share on other sites More sharing options...
Guest Andy Posted December 25, 2012 Share Posted December 25, 2012 I am sure this has been said every year since we arrived. It's never happened. AUSTRALIA'S love affair with property is about to be tested amid predictions prices will plummet by as much as 60 per cent, with capital cities hardest hit. That’s the Armageddon-esque warning from leading US real estate analyst Jordan Wirsz, who believes Australia is heading towards a property bloodbath as the global economic downturn spreads to China and eventually here. Mr Wirsz advises Fortune 500 CEOs and fund managers on investing in real estate. He predicts that a flood of properties will begin to hit the market in Australia from next year as investors scramble to bail out, leading to a property crash of magnitude the country has not seen before. “Right now is not a time to be buying real estate in Australia," Mr Wirsz said. "The market has slowed substantially but residential prices are likely to fall up to 60 per cent, possibly even more, within five years." The outlook is even grimmer for land investments, which Mr Wirsz said are more speculative and will plummet by as much as 80 and 90 per cent in value. Commercial property will also take a hit in line with the residential sector shedding at least 50 per cent of its value. Read more: http://www.news.com.au/money/property/bloodbath-to-hit-australian-real-estate-property-analyst-jordan-wirsz-says/story-e6frfmd0-1226248472949#ixzz2G2M2E5H3 You wonder if they are just going to go back down to what they maybe were 7-8 years ago which probably was about 60% less, then there really will be a bloodbath, from a selfish point of view that would suit me for 2014 as the houses at the moment look fairly unaffordable. Link to comment Share on other sites More sharing options...
Guest Ptp113 Posted December 25, 2012 Share Posted December 25, 2012 Been hearing this for 40 years. It ain't gonna happen when Oz is short 200,000 dwellings. Link to comment Share on other sites More sharing options...
Guest sidster Posted December 25, 2012 Share Posted December 25, 2012 "Right now is not a time to be buying real estate in Australia," Mr Wirsz said Exactly what i was told by a real estate agent a month ago !! Link to comment Share on other sites More sharing options...
Guest Ptp113 Posted December 25, 2012 Share Posted December 25, 2012 ACT sales are on the up. Somebody has it badly wrong Link to comment Share on other sites More sharing options...
Rupert Posted December 25, 2012 Share Posted December 25, 2012 Houses aint going to fall 60%, not least because people just won't sell if it were the case. Link to comment Share on other sites More sharing options...
flybyknight Posted December 25, 2012 Share Posted December 25, 2012 Fellas a property speculator. He bets on a drop in sales, programs the public via the media with this, and makes a few bob. Good work if u can get it. Link to comment Share on other sites More sharing options...
Guest Bazinga Posted December 25, 2012 Share Posted December 25, 2012 Everywhere aside from the ACT... Link to comment Share on other sites More sharing options...
Guest Ptp113 Posted December 25, 2012 Share Posted December 25, 2012 Everywhere aside from the ACT... Have you seen the number of units going up here right now? Never seen anything like it. Link to comment Share on other sites More sharing options...
Guest Posted December 25, 2012 Share Posted December 25, 2012 I am sure this has been said every year since we arrived. It's never happened. AUSTRALIA'S love affair with property is about to be tested amid predictions prices will plummet by as much as 60 per cent, with capital cities hardest hit. That’s the Armageddon-esque warning from leading US real estate analyst Jordan Wirsz, who believes Australia is heading towards a property bloodbath as the global economic downturn spreads to China and eventually here. Mr Wirsz advises Fortune 500 CEOs and fund managers on investing in real estate. He predicts that a flood of properties will begin to hit the market in Australia from next year as investors scramble to bail out, leading to a property crash of magnitude the country has not seen before. “Right now is not a time to be buying real estate in Australia," Mr Wirsz said. "The market has slowed substantially but residential prices are likely to fall up to 60 per cent, possibly even more, within five years." The outlook is even grimmer for land investments, which Mr Wirsz said are more speculative and will plummet by as much as 80 and 90 per cent in value. Commercial property will also take a hit in line with the residential sector shedding at least 50 per cent of its value. Read more: http://www.news.com.au/money/property/bloodbath-to-hit-australian-real-estate-property-analyst-jordan-wirsz-says/story-e6frfmd0-1226248472949#ixzz2G2M2E5H3 Great for us yet to make a purchase then Link to comment Share on other sites More sharing options...
WeegieDave Posted December 25, 2012 Share Posted December 25, 2012 Cant see it falling as much as 60%. Even as much as 25% would be nice!! Link to comment Share on other sites More sharing options...
Guest Posted December 25, 2012 Share Posted December 25, 2012 Can't see it myself. Be great if it did, but if they've not dropped that much in Europe which has been much more badly affected by the GFC, then I doubt Australia's will drop anything like as much. Link to comment Share on other sites More sharing options...
Ken Posted December 25, 2012 Share Posted December 25, 2012 I'd be happy if this prediction were accurate since I'm still renting and am looking to buy in the future, but it's not going to happen. The problem is this Jordan Wirsz is an american who's simply applying the american experience to Australia. Yes Australian property is vastly overvalued by american standards - but that doesn't mean there will be a correction. Part of the overvaluation is because the Australian dollar is currently overvalued against the USD. When that corrects part of the apparent overvaluation of house prices will disappear overnight without any change to the actual AUD house prices, but most importantly house prices are a factor of supply and demand at the local level. Empty houses in Florida will not reduce house prices in Melbourne by any discernible amount - the commute from Florida to Melbourne is too long! Link to comment Share on other sites More sharing options...
starlight7 Posted December 25, 2012 Share Posted December 25, 2012 More likely the market will slow down a bit but not that much. It is interesting how Americans can predict these things outside USA but were unable to predict their own market Link to comment Share on other sites More sharing options...
ozziepom Posted December 25, 2012 Share Posted December 25, 2012 More likely the market will slow down a bit but not that much. It is interesting how Americans can predict these things outside USA but were unable to predict their own market You'll see massive interest rate cuts first. A much smaller than 60% fall will wipe out all of the Australian banks, and the RBA will do everything in its power to save them, the AUD should fall in the process so priced in USD the falls will look larger than. Its cheaper to buy than rent in many places already, and this above all will provide support to the market as renters turn into buyers. Prices may fall somewhat, but 60% is la-la land. Link to comment Share on other sites More sharing options...
VERYSTORMY Posted December 25, 2012 Share Posted December 25, 2012 I live in an area dominated by people in mining and we have seen a drop of 60% recently and falling. It won't be long before the effect is felt WA wide. Every mine I know is planning mass redundancies in the early part of next year. Perth is about to get hammered. Link to comment Share on other sites More sharing options...
colinmaclec Posted December 25, 2012 Share Posted December 25, 2012 I think they will take a hit soon as well. Perth right now reminds me of the UK before the housing market crashed and the signs are there. Link to comment Share on other sites More sharing options...
Chortlepuss Posted December 25, 2012 Share Posted December 25, 2012 If Campbell Newman keeps his slash and burn up in Brisbane, that should start to adversely hit the housing market. Brisbane seems way overpriced to me, but the nasty units and cheaply constructed but expensive town houses keep being snapped up by buyers. My area (8K from city) saw falls of about 10% last year, but that still doesn't make things affordable, and due to the insecure job market here, people don't have the stability to buy even if they can afford it... Link to comment Share on other sites More sharing options...
Freckleface Posted December 25, 2012 Share Posted December 25, 2012 Not this old chestnut again. Every few months or so the same statements are made by the same groups in the US (year after year). I think it is more wishful thinking than anything else. Some regions have seen a modest fall recently but others such as Melb have seen a 30% increase in the median property prices over the last 15 months. You only need a superficial understanding of the Aust property market to see statements in the article which are not accurate. But if it makes some people happy to think the market is going to take a 60% hit - dream on. Personally I'll believe it when I see it. Link to comment Share on other sites More sharing options...
flybyknight Posted December 25, 2012 Share Posted December 25, 2012 tellin me FF, http://www.pomsinoz.com/forum/news-chat-dilemmas/137534-australia-property-prices-set-plummet-60-a.html almost a year to the day ! sure this guys on the take, i googled him, he's been accused of a scam, he has a defence but to find yourself in that situation in the first place... bells be ringing! Link to comment Share on other sites More sharing options...
Guest chris955 Posted December 25, 2012 Share Posted December 25, 2012 Prices really have to fall, they are just way over inflated, whether it will be 60% I doubt but there certainly should be a fall with the economy slowing and people not being able to get on the ladder. Link to comment Share on other sites More sharing options...
Waitingawhile Posted December 25, 2012 Share Posted December 25, 2012 that article is dated 20th Jan 2012- oh dear he got it wrong then? Link to comment Share on other sites More sharing options...
flag of convenience Posted December 25, 2012 Share Posted December 25, 2012 Been hearing this for 40 years. It ain't gonna happen when Oz is short 200,000 dwellings. Well housing has not been so unaffordable as in recent years in comparison with wages. Australia is prime ground for a massive reversal in housing prices due to this fact. Prime reason of increases which was the mining boom is going into decline. Price increases in the past eight or nine years has been far more than 60% over that time. More than double that in our case. Still some believe house prices double every seven years ......insane in my opinion. There is just not the money. Link to comment Share on other sites More sharing options...
flag of convenience Posted December 25, 2012 Share Posted December 25, 2012 Have you seen the number of units going up here right now? Never seen anything like it. Whose buying them? I think you'll find overseas Asian buyers very aggressively buying in this market....... Link to comment Share on other sites More sharing options...
flag of convenience Posted December 25, 2012 Share Posted December 25, 2012 More likely the market will slow down a bit but not that much. It is interesting how Americans can predict these things outside USA but were unable to predict their own market Some did predict massive falls in the States but were often disregarded by folk with vested interests wanting others to believe otherwise. Prices were still low compared to Australian prices though. Australian earnings ishave fallen considerably behing house inflation. Link to comment Share on other sites More sharing options...
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