Victoria’s second wave “will see house prices fall fast”

Perennial housing bull, Peter Switzer, has turned bearish on Australian property, warning that Melbourne’s lockdown “will see house prices fall faster than they currently are”:

“You have to expect consumer confidence and business confidence will fall, therefore business investment falls and then house prices will fall faster than they currently are…

“Specifically Victoria, Because it’s difficult to sell if you cant get people to go to open houses and the fear factor is getting bigger…

“The last five weeks in a row, confidence has fallen and it is all linked to the lockdown. Putting a question mark over the rest of the economy.”

Peter Switzer should be bearish. The headwinds facing Australia property are huge, including:

  • High unemployment and falling household incomes;
  • Collapsing immigration, rising supply and falling rents;
  • Mortgage repayment holidays and emergency income support ending;
  • Early superannuation release ending; and
  • Tightening credit availability (despite falling rates).

Melbourne’s property market is most at risk. Not only is it suffering from a second hard lockdown, but it is most reliant on mass immigration, which has ended.

Leith van Onselen

Comments

  1. Goldstandard1MEMBER

    This guy! Switzer blames property crashing on a second wave indicating everything was sweet before then. Nothing else.

    He is a clown (and actually looks like one BTW) with his big red snout firmly in the property ponzi’s a-hole trough.
    Still going bear hunting with KFC Joye you absolute haz-been?
    His answer? More tax free long business lunches-wow!

    You know how dumb he is (or at least he thinks his audience is)? He said the one good bit of data this week is that credit card spending is up because ppl can’t take holidays.
    NO YOU CLOWN, it’s because we are all tapping instead of using cash or EFTPOS because we have to! Then we transfer it at the end of the month!
    F. me gently.

    This crash is going to be SOOOOO so surprising to these lunes, and our popcorn is going to have extra salt and butter on it.

    • Switzer is still shilling here. Note that he is only blaming price falls on the ban on open homes and the lack of confidence (implying that there is nothing very fundamental or solid behind the falls).

      No mention of unemployment or halted immigration!

      What a muppet.

  2. “We need Govt approved butt-kickers”…. stupid country straya if you listen to this twat.

  3. Honestly get rid if that dinosaur

    Put a really property gun on Catherine Cashmore

    I think it’s time to get Catherine’s view

    • Someone ElseMEMBER

      Investment advice from someone named ‘Cashmore’? I want more cash; count me in.

    • Isn’t she american? Did I read her advice to investors a few years back, suburbs like Thornbury had big blocks of land, and the young families were desperate for such homes with grass and gardens, Her advice? Investors Shoukd buy and subdivide these properties. Vile

  4. Diamond Hands

    When are we going to get the second wave? We are not done with the first one yet.

  5. reusachtigeMEMBER

    See, this is why WE MUST open back up immediately. I have no doubt governments will do so when they realise the risk to the property market.

    • DominicMEMBER

      You okay, Reus? Just a hint of pleading in your tone.

      Let’s hear BOOM times ahead! – just for old time’s sake.