Economists drive through WA town counting endless ‘for sale’ signs on properties revealing the true extent of Australia’s housing crisis
- Mandurah, south of Perth, is a town with countless ‘for sale’ and ‘for lease’ signs
- The town’s property prices have fallen by 30 per cent since its peak in 2014
- Mandurah has been dubbed ‘the ground zero for negative equity’ in the state
- Unemployment and drug problems have contributed to the economic decline
Economists who drove through a Western Australian town with countless ‘for sale’ and ‘for lease’ signs say the housing disaster won’t change ‘anytime soon’.
Property prices in Mandurah, south of Perth, have fallen 30 per cent since its peak in 2014 and has been dubbed as ‘the ground zero for negative equity in the whole state’.
The high levels of unemployment, lack of jobs and drug problems have contributed the the town’s declining economic climate.
The findings were revealed through a YouTube video titled The Economic Massacre of Mandurah, which has gained over 28,000 times.
Economists who drove through a Western Australian town with countless ‘for sale’ and ‘for lease’ signs say the housing disaster won’t change ‘anytime soon’
Economist John Adams, analyst Martin North and Electoral Council Australia’s Robbie Barwick discussed the town’s economic challenges.
‘Property prices in Perth have fallen 30 per cent and rents have fallen 30 per cent. It’s really going through a lot of turmoil,’ Mr Adams said.
The average house price in Mandurah peaked in 2014 from $340,000 but currently has an average of $240,000.
The average unit house price in 2011 at $450,000 and now has an average of $230,000.
Mr Barwick said he was ‘definitely surprised’ with the large amount of vacant properties, which are up for sale or for lease.
‘I have never seen anywhere in Australia like it. With all those signs, house prices aren’t going up anytime soon,’ he said.
According to Mr North, roughly 21 per cent of properties are unoccupied and a whopping 41 per cent of households are unemployed.
Property prices in Mandurah, south of Perth, have fallen 30 per cent since its peak in 2014 and has been dubbed as ‘the ground zero for negative equity in the whole state’
The high levels of unemployment, lack of jobs and drug problems has contributed the the town’s declining economic climate
Mr Barwick and Mr Adams, who visited the town’s commercial precinct, said the area was virtually dead between 8.30am- 9.00am.
‘We had been told throughout the morning that commercial activity throughout the region had basically collapsed and there’s a high level of unemployment,’ Mr Adams said.
When two part-time jobs at the town’s cinema were advertised, the line of applicants stretched to 250 metres outside the building.
‘It is difficult to get work and for businesses to be able to make a profit,’ he said.
Mr Barwick also noted Western Australia’s drug problem.
‘It’s quite shocking to be told Mandurah is the meth captital when in itself is the ice capital of the world,’ he said.
Economist John Adams (right), analyst Martin North (left) and Electoral Council Australia’s Robbie Barwick (middle) discussed the town’s economic challenges
‘A decade ago, Mandurah was the place to be. It was a happening place in Western Australia. Everyone wanted to get in.
‘It’s been a slow motion train wreck by the looks of it.’
Mr Adams added: ‘When you have massive amounts of mortgage stress, massive amounts of negative equity, high levels of unemployment, you can understand why there are a festering of social problems happening in that part of the country.’
Mr North described the economic state of Mandurah as a ‘slow traffic accident’.
According to Mr North, roughly 21 per cent of properties are unoccupied and a whopping 41 per cent of households are unemployed