The storm clouds are getting darker for the world’s and Australia’s economy. In these uncertain times does the old standby of “you can’t go wrong in bricks and mortar” still hold true?
The Americans, British and Bulgarian property owners have seen that you can go very wrong with property. As with any commodity in over-supply, if there is too much supply and not enough demand the price will go down. In California house prices have dropped over 40% in 12 months. Australian’s are watching their share market follow Wall Street down, down, down, and wonder if their property values will be next to head south.
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The tide has finally turned on the holiday home market in south west WA.
Perth’s millionaires are finding it hard to move their second (or third or fourth) homes. Dunsborough, the premier town of the region and conveniently close to the Margaret River wineries, has seen the median house price fall 11.4% to $655,000 in the year to June. It might be worth remembering that as recently as 2003 the median house price in Dunsborough was $252,000.
