Several reports from all over the world show that home prices dropped globally in 2015. Industry analysts from all over the world explained that the said phenomena was the result of a global "weaker economic sentiment"
In Australia, the Pilbara region proved how big the real estate downturn is in the country. Home prices in the mining mecca was at its lowest since December 2006. The average home price in Karratha also fell from the March 2013 peak of $897,830 to $484,134 in September 2015.
"I think what occured is because of the widespread notoriety of extraordinary well-publicised cases three or four years ago, of tin shacks getting a million dollars, we saw speculators move in and it wasn't really reflective of a natural housing market dynamic. It was more about a commodity that was scarce and spectators are taking advantage of that," explained Domain Chief Economist Dr. Andrew Wilson.
In Hong Kong, the housing market was highlighted by massive price-slashing. For instance, a two-bedroom flat at Tseung Kwaon O Plaza which was previously sold for $HK5.188 million or HK$11,427 per square foot, was reduced to $HK4.188 million in two months. According to estate agency Hong Kong Property, homeowners were cutting prices dramatically, some dropping as much as 15 percent of their asking price. As a result, local prices began to fall. In Kowloon, local prices saw the biggest fall in just five weeks.
Singapore, another Asian country, also suffered a housing market crisis last year. Good class bungalows which used to sell $30 to 32 million a year, only fetched $25 to 27 million.
According to Realstar Premier Group Managing Director William Wong, the price drop was caused by weaker economic sentiment globally, and not just in Singapore.
"Also, onwers are more realistic in their pricing especially for those who hae not been able to find a buyer after putting their property in the market for more than a year," he said.
