I have taken a good look at the excess stock issue in Perth and...

I have taken a good look at the excess stock issue in Perth and there are factors that really need to be taken into consideration before declaring an across the board price crash continuing. Definetely prices have come off from highs significantly but further large decreases in well established suburbs are not gaurenteed in the short term. Areas where stock is skyrocketing and prices are really getting smashed are the spots where speculation in negatively geared investment were at their highest. Given prices have not really risen in 3-4 yrs in these suburbs the whole negative gearing situation is like throwing money down the drain and I think what we are seeing is alot of these positions being liquidated all at the same time. Overall sales in Perth are still relatively high, so there is plenty of demand in particular price ranges and suburbs. I think the ~3600 (and rising) properties in Mandurah and Rockingham are scewing the figures a bit. A few things are for certain, prices are going nowhere in a hurry, if you have an investment in Mandurah or Rockingham that was purchased in the last 4 years you will take a massive bath, rents will continue rising and if you purchased a $4mil apartment at leighton beach with borrowed money you need to be placed on suicide watch because it not worth half that figure.