PROPERTY INVESTMENT

Why building in a flat market is not as bad as you think

August 22 2016
Flat market
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There’s a lot of talk in the media about how the Perth property market is currently flat. As cautious Investors and Developers we are predispositioned to associate ‘flat’ as a negative, but a ‘flat market’ may not be as bad as you think.

When demand for housing declines, the number of properties available for purchase increases in volume generally resulting in a reduction in price. Prices fall until purchasers are prepared to re-enter the market, and then the market realigns itself to the new price allowing opportunistic buyers to take advantage of the market condition.

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