Friday, 20 May 2011

Australia's Last Property Crash

I thank Corydora at Simple Sustainable for the research. 

The Political Economy Of Environmental Policy: an Australian introduction

Page 97

Huge paper fortunes were backed by the ‘security’ of land valued at prices so inflated that some Melbourne suburban blocks did not reach their 1888 prices again until 1962!

74 years? Sweet, a blip or a 'sideways market' in Real Estate wankspeak. Maybe even 'unusual'.

Another book.
Sydney Boom, Sydney Bust

Page 161

Land at Hurstville which had fetched £25 000 in the 1880s could attract no takers when reofferred for sale in 1905 at £4000, and another estate at Tennyson which had changed hands for £50 000 in the boom was sold in 1905 for £3000.

Thats not a crash, thats carnage. In Tennyson you lost 94% in 25 years. That is close to the Noosa development that just lost 75% in 16 years.

"History never repeats" and "Its different here" and "This time its different" yada yada.

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