Be alarmed and alert.... but don't panic

neither am I
economy worst in Australia, not surprising

 

hey c'mon... perth prices dropped 3%in 2015? and unemployment rate is 5.9%. Its not great but its not Greece either.

Unemployment down in WA as national rate rises

 

Yep...people forget that WA had it good for almost 9 years....it will come back....as a matter of fact a lot sooner than people think...within 3-5 years it will be business as usual.

 

I agree (albeit with a slightly longer timeline), starting with Lithium and the Pilgangoora deposit.

A massive lithium ore deposit has been confirmed in Western Australia

Take a note of this post and thank me in 2020-2025 when the East Coast is in the doldrums.

 

Yeah ok...so there is different stuff un the hole in the ground...but perth will be better served if it develops a non mining economy more than what it currently has. Thats not to discount mining, but theyve gotta have more industries that cintributes $ to the state economy.

 

Of course and like Brisbane that is exactly what they will be trying to do. We're almost in the same mess over here, some just haven't caught on. Remember what I said about bellboys and baristas.

Coal for QLD won't be making a comeback but lithium will have enormous demand and will come at time when the entire world is pushing renewables. Plenty of tech industries will be tied to this alone and the slump would have allowed the 'hard reset' that our boom/bust cities (like Brisbane) need.

Go and have a look at Australia's historical GDP levels to see what "different stuff in the hole in the ground" contributes to the Australian economy.

Don't wait until it's on news.com.au

New York needs 33,700 GWh of new renewable generation to meet 2030 target: PSC - Electric Power | Platts News Article & Story

Solar-Backed Bond Opens New Path for Renewable-Energy Financing

Aston Martin Is Latest to Join China's Growing Electric Car Derby

 

Who mentioned Greece?

You feeling brave, go for it.

3% in 2015, oh please don't base it on some general stats, it's too broad and at the end of the day is meaningless

Prices have dropped at least 10-15%, rents have also dropped significantly
Over supply of apartments everywhere, not only inner city.

Development sites do not stack up, and end values should be calculated at least 10% less IMO, but as I said nothing is stacking up

It's not bad, but it's not great either, certainly not a buy

We have an oversupply over 15000 properties on the market, balanced is around 12000.

Higher end properties in blue chip 1.5m have still not recovered from last crash of 2007.

when will it recover, no idea cos we don't have anything to replace mining and we no longer have highest population growth, Melb is the winner here

 

Oh dear. Sorry Perthguy, MTR is right, you've just sold gold in hope of buying lead.

 

yeah ..I never said to discount mining..just that they would be better served if non mining contributed more significantly to the local economy...

 

It won't.

 

Plenty of stuff contributing to the state economy.... Like $5 coffees and $25 bacon & eggs.

 

how can anyone make that comments without knowing the specifics?

 

This hits me every time I'm there, once a week I have to re adjust to Perths prices when out eating. I still love Perth as its one of my favourite places. I see many wanting to live there, has a while till it corrects, but it will. My second favourite destination other than melbourne.

 

We will see

 

Of course it will recover. Perth is not a one horse town and mining will rise again....one day.

Calgary is an example of what happens when a city tied to one resource crashes.

'This is a bona fide buyer's market': Calgary real estate to fall further in 2016

edit..Its is interesting that Iron Ore prices are up almost 30% since December.

 

Generalisation, (and yes the comment is probably incorrect like most generalisations).
Toungue n' cheek.

 

It's a correct statement if I bought in Perth now. All of the deals I have seen in the past 6 months have been lead. There is not even a glimmer or gold yet, unless I can figure out a way to turn lead into gold

 

Cheers Perthguy; well, I'm rooting for you!

 

I'm just waiting for those 50% price drops

 

I can only see an upward direction for rents....speaking of Melbourne specifically.

Melbourne grew by approx 100,000 people last year.....and is predicted to continue.

APRA in November last year tightened the screws reducing the ability of investor lending growth, so in theory leading to less properties added to the "rental supply"....whether it's a new build or an investor adding to the supply by buying an established property.

Banks have also tightened the screws on serviceability calculators for PPOR buyers....first home buyers included....so theoretically placing more demand on rental properties for a longer period as people who "could" afford a PPOR may no longer qualify, or need a larger deposit....so need to rent for longer before they can get thier PPOR.

If negative gearing is tinkered with to discourage investors further, this will only decrease the "addition to the rental supply pool" even more

Rental growth will be the big winner if all the above come together to create a lack of interest by new investors to add to the rental pool.

This seems logical to me if you have massive population growth like Melbourne does anyway.