re: perth property market sue12 interesting debate,its a no...

re: perth property market sue12 interesting debate,

its a no brainer that the property market in perth is linked to the resources industry. so to make a call on property, one must stop sitting on the fence when considering the future of resources.

a few points to consider with perth property:

the government was caught off guard as was everyone with the resources boom/property, hence was very slow in releasing land for development.

A huge demographic shift from the suburbs/river to the coast

Eastern states investment into perth

first home owners grant

growing population = resources

etc etc

as with rapid growth in any sector there will always be a correction, factors potentailly driving a correction;

long construction times [people in perth a sick of waiting minium 2-3 years for a new house

inflated building costs [tripled over the last 4years]

government finally releasing more land

a shift to appartments now the city is coming alive

interest rates

lack of decent/quality property

etc etc....

however is it a bubble?.....analyst's experts blah blah blah [isnt everyone and expert on property] allways calls a bubble...it sells news papers......like you have stated Hu$h it is slowing..stabilising...rationalising perhaps...but crashing? the areas you have mentioned...no offence to people living there but maddington, really would you want to live there??

mandurah has asolutely exploded over the last 5years it has to stop.

i would agree its overheated at present but it is firmly tied to resources and as i said it all depends on your global economic outlook, IMHO i do believe we are in unpresendented times with a stable economy for the next 5-10 years....wiht a lot of volitility thrown in....personally i am not investing further in perth property however i have like most done resonably well, however i am backing the markets strongly and believe this will underpin the property market.

notice the US bubble has not happened and their economy is stabilising. the loss of 29k construction jobs for november was offset by 172k jobs in the service sector.

another 46% growth in property next year...not likely 10-15% maybe.....long term....depends on your global view.