Blossom

As we all know the price of a house here in the UK is dropping quite drastically. So my question is are they going the same way over there, more specifically in NSW (Wollongong area) and Surfers Paradise areas?

asprilla

Without being able to provide any hard figures, I think most people will agree the answer is "no".

I'd say that prices are pretty static at the moment, perhaps climbing slowly.

DrWho

Dropping here on the Northern Beaches... 5.7% off in Mona Vale year on year to July...

Blossom

Watched a programme on TV tonight, stating house prices have dropped 30% since last year and within the next 2 years will have reduced by 50%! This is scary, and I don't understand why Australia isn't affected - even though this is supposed to be a global situation.

I remember living in Australia when the last housing crash occurred in UK, there was no effect on Australian house prices then either!

Annie.R

It is so hard to say, as house prices vary from suburb to suburb and even within suburbs depending upon the type of property.

Surfers Paradise itself is mainly made up of holiday units and there is likely to be more sales with the credit crunch which would lead to oversupply and lack of demand and therefore likely leading to a fall in prices. But that is only one part of the Gold Coast, and certainly not representative.

Other parts of the Gold Coast have also had ups and downs - some areas seem to be holding up, whilst others are flat.

I would have a look at websites such as www.rpdata.com.au or get information from PRD (which is a real estate company that do investor research). They seem to do reasonable suburb snapshots with information on the house prices and are often doing reports (I think you have to subscribe for the reports, but when I did it they just wanted email address, no money!).

The best thing is to do your research on the suburbs and types of properties you are looking for. It may cost you a bit, but it is well worth it if you are planning on making such a large investment.

Hope that helps

Blossom

Many thanks. Was hoping to buy home in NSW and a holiday place in Surfers, but if the market over here dives too low then QLD will be out of the question.

asprilla

Well, it still might be possible....there might be a drop in house prices on its way over the next year or so.

themerlin

There is still a strong demand for housing, so I guess that will help.
The banks are still willing to lend to first time buyers at the moment, that and the 14/21k grant make it possible for people to get onto the ladder.

I think it's the first time buyer situation that stuffed up the UK market.

Wol

In this part of the world the asking prices have dropped a bit - and the actual selling prices by a lot. Properties on the market a year ago for $1.7m are selling - if at all - for the $1.1m mark. There are a lot of houses coming up as repossessions, too.