renth

It had to happen sooner or later. Western Australia's remarkable property boom is showing the first signs of coming off the boil.

And it's now timely to issue this warning: stay out of the WA market. The market cannot keep rising and there are gathering signals of the boom subsiding. More and more analysts are starting to predict a backward movement in property values.

You'll need to register to see the story:

http://www.jenman.com.au/news_subscr...ection=Reports

CadburysFingers

They were saying that in the UK three years ago, yet the house our friends sold there in 2003 has just resold for 90k (pounds) more than they sold it for, after being told by anyone with an opinion that it could never go any higher for the next 10 years or so. Demand will always push prices up, and at the moment WA is not just an Australian hotspot but a world hotspot for people looking to migrate or relocate.........consequently I beg to differ on this one.

renth

Have you read the report? More people are going to Victoria and Queensland than WA

northernbird

There has been a slowing down in recent weeks. A house 3 doors down to me has been on the market 2 weeks. In Connolly when I bought they were being snapped up in hours. I think the rises will slow, maybe even a small drop but 20%, I haven't read the report but I can't see it. It would spell disaster for a lot of people and would cause a problem for the Australian economy, not just the WA economy.

renth

Just put your email address in the box.

CadburysFingers

Not argueing with you Renth, as I have no desire to argue with anyone, but for every report saying prices will drop there is a report saying they will rise, just like when the monetary commision meets every month, some say interest rates should rise, some say they should remain static. A report is just an opinion, the facts are there are still a huge number of people arriving in WA every week, and they all need somewhere to live. If you pan forwards say 30 years there will probably be 30 million people living in Australia as against our 20 million population at the moment. Australia in world terms is a new country, and an awful lot of people want to live here. For example we migrated in 2004, with one child, we now have two, my parents are migrating on the parental visa, as are my wifes. Added to that my brother wife and son are three quarters down the line, just waiting for their meds to come through, and our friends are also well on with their application, from an original 3 migrants the total will be 15 plus any future children (my bro is planning another one). I doubt the same exodus can be attributed to many other countries.

sunbather

I haven't read the report but the 8 "experts" in last weekend's Sunday Tiimes property supplement all agreed that the property market woul continue to grow, albeit at a much much slower rate.

midwifetanya

We've been house hunting here for a while now, and it seems
similar things are apparently happening here in Brisbane (according to the local estate agents)...houses sit on the market for weeks...then get drastically reduced in order to sell! some knock off as much as 20% off in order to sell
They previously were being snapped up!...I think I'll wait a while longer before buying
Tanya

Amazulu

One thing I have found about the property market over the years, both here & in the UK is that opinions are like assholes, everybody has got one.

Here's mine. Price rises will slow & stabilise, market will stay flat or maybe drop slightly barring any unforeseen circumstances.

nightnurse2

The UK??????????????

Paul and Chloe

But all those "experts" were estate agents who could be seen to have a vested interested in keeping things looking positive.... I have to say even Sydney is looking good value now compared to Perth.

mbike

In the red corner, the people who have recently bought and the real estate industry preying for a soft landing. In the blue corner, the renters and the wanna-buys hoping for a crash. At the end of the day - and with such a small property pool on offer - it is whatever someone is prepared to pay that seems to dictates the price in Perth. Until something as accessible (and free) as nethouseprices.com starts up over here we will just have to keep on taking the REIWA's version of what the market is doing. A bit like asking a shark what the water's like.

Mark

renth

Did anyone follow the link and read the report?

Paul and Chloe

Just finished reading it...interesting but as someone has pointed out it is just a point of view. I think that houses here are grossly over valued but not sure that it will drop that much, although I am a member of the camp who hopes they do as we are still waiting to buy. We are, however, not against the idea of moving over to Sydney where we could afford a really nice house over looking the ocean based on the current prices over there....and I could earn a better salary too!

Cheers

Paul

renth

Or read Jenman's version.

Read the article - it's not just about Perth It covers all the Aussie capital cities and is bullish about some. Perth stands out though as grossly overvalued.