Three years ago, we published a special subscriber’s report warning that Perth’s housing market, which at the time had experienced strong price and rental growth, was on borrowed time “with the unwinding of both commodity prices (iron ore in particular) and mining investment threatening to cut Western Australia’s growth rate, reduce incomes and increase unemployment”.
This was followed by another special subscriber’s report in 2014, which warned that Perth’s housing market was on the precipice of a crash. It also noted that “following the end of the mid-1970s mining boom, Perth house prices declined by nearly 30% in inflation-adjusted terms over an eight year period”. And that “if history is any guide, similar falls could be in the offing over coming years as Western Australia’s once-in-a-century mining boom unwinds”.
