LETTERS TO THE EDITOR: Property bubble; Regional Markets

Letter 1

From: The Ponz

Def bubble. Oz has had one for a while. The only reason we still have one is because of too many vested interests. All those who are in a position to make any changes have their nose in the trough.

Letter 2

I am continually hearing about the housing bubble about to burst, prices being driven up, first home buyers driven out of the market by investors. I find these comments generally unfounded and almost laughable.

I have a house for sale in Mount Tamborine, Queensland and it is valued less than what I paid six years ago. I also have one for sale in Westlake, Queensland and it is valued at $150 less than what it was five years go.

Where are these stories of high prices coming from, certainly not Queensland?

In further correspondence

The houses in question are:An investment house I bought on Mount Tamborine, Queensland some six years ago for $485,000. 

I am now wanting to sell and it has been valued to list at $450,000 to $470,000. 

The other is my family home in Westlake, Queensland. Since the passing of my wife it is time to move on, I find that in the four years since the price of my house has dropped from an $850,000 value to a max of perhaps $700,000. 

I'm not saying that this price drop is catastrophic as I have had he house for much longer than the four years and there is no loss to me in that valuation. 

These are everyday values of houses of two different parts of Queensland, one an executive area and one a semi-rural area, and I would say a reasonable cross section. 

I've seen many real estate stats including RP Data Stats for both areas and they certainly don't show an increase in price, indeed they show a decrease in the areas.

Letter 3

We have several investment properties in Cairns and one in Mackay. I know it’s hard to predict hotspots but I enjoy the banter about what determines a hotspot. I believe that you do know your own market better because you live and breathe it everyday.

Times have been quite bad for Cairns but it is gradually turning with rental vacancy around 1% at present and the Aquis hotel casino in the mix the next few years should be interesting.  

Mackay on the otherhand has gone off the boil, where big returns have calmed and rental vacancy at 8%.  Just goes to show how relatively quickly things change!