Real Estate in Australia

I am currently out of the country attempting a Guinness World Record in Australia for charity. If you are interested you can follow along at www.theflight4life.com

We have been unable to do anything for a few days because of a new Guinness World Record, the most amount rainfall in Queensland in a week.

We knew that the cyclone season could pose some problems for us and here we are. With a little luck, things will settle down soon and we will be on our way!

While I was here, I decided to do some reading on the Australian real estate market. Generally, Australia and Canada have faired better than most other parts of the world in the economic downturn that we are still experiencing. 

Australia, not unlike Canada is a beautiful tourism destination albeit with a slightly different climate. The price of properties in the two areas I have been in so far are high compared to Kelowna. A small view of the Indian Ocean in a fairly typical family home in Perth won't give you much change from $1 million. The Gold Coast where I am currently waiting out the storm is pretty similar. 

For all the talk of weathering the economic storm however, some cracks are beginning to show as I discovered in a recent news.com.au article by Sonja Koremans. The excerpt from that article shows how the deferred challenges of a lagging economy are starting to hit home.

"In Noosa this week, new three and four-bedroom homes that last sold for $1.5 million are now in the hands of receivers and have price tags of between $395,000 and $450,000. Similarly, on the Gold Coast the re-pricing of high-profile financial crisis victims, including Oracle at Broadbeach, have triggered interest with buyers who are purchasing units at 30 per cent below original asking price. Agents are off-loading lingering stock to summer tourist crowds, with prices cut from between $200,000 to $1 million on high-profile developments."

While the real estate market may be slow, I think that the tide is turning over here and the Aussie's certainly are not shy to bring a dose of reality to any discussion. They know, like us that it will take hard work and perseverance to turn the corner and if there is a nation that can do that... it would be Australia.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.