The capital city of Perth is facing a property meltdown as investors flee Perth for the city of Adelaide and the South West.
The stock market crash is a serious problem for Perth, with Perth’s average price of $1.2 million (NZ$1.4 million) dropping by more than 50 per cent from its peak in June.
While the crash may not be the biggest issue for Perth yet, there is a potential for it to be a major problem for its city.
In a statement, Perth’s chief executive, Steve Kelly, said Perth’s property market was “very strong”, and that the city had a “very high level of confidence” in the city’s infrastructure and its property market.
“However, we have had to make difficult decisions over the last two weeks to reduce our exposure to the Australian property market and our city is experiencing a property price crash,” he said.
The city’s capital, Perth, is the largest city in Western Australia.
It’s population is just over 2.2million and is a “core” city.
“We are facing the potential for a property crash in Perth if we don’t manage the city properly,” Mr Kelly said.
Mr Kelly said the city was already experiencing a “sharp decline in home prices” and said “there is no time for complacency”.
“We have had two straight months of declining property prices.
We have a very high level for the capital, but there are some things we can do,” he told the ABC.”
You can’t be complacent.
We’re still very strong.
I’m not saying we can’t do better, but it’s not like the last crash.”
Mr Kelly acknowledged Perth’s city centre was facing a “significant and rapid decline in housing prices”.
“As a result, the CBD is not as attractive as it used to be,” he added.
“In terms of housing, Perth is one of the safest cities in Australia, but that is changing.”
“As Perth’s housing market improves, I would expect the overall value of properties to improve as well,” Mr Shannon said.
“If we can reduce the number of properties that are sitting vacant, we can help increase the value of property.”
Mr Shannon said Perth would also need to take more responsibility for its property markets.
“There are some key things that need to happen that will help to help Perth achieve the kind of success that we’ve been achieving in recent years,” he wrote.
“These include: increasing the amount of property owners in the CBD; increasing the number and type of homes that are available; and improving and diversifying the types of property that are in use.”
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