top of page

Finding Opportunities in Commercial Real Estate! Interview with Property Whisperer Warren Ebert

Updated: Dec 1, 2023

We put a lot of emphasis on the residential market when analysing the land cycle.

However, few are aware that historically, the commercial real estate booms and busts have had a far more significant impact on Australia’s economy.

The commercial real estate downturn in the 1990s for example, was a major event.

Despite the recession being officially over in 1991, the crisis for the commercial market peaked in the mid-1990s — with commercial median property values falling over 50% in some parts of the country.

Prices collapsed by around 60% in real terms, and by around 70% in Perth.

Compare that to the drop in the residential median price in the 1990 downturn — of some 10% — and it gives some idea of the magnitude.

Many property developers and investors went bankrupt or were forced to sell at a major loss.

There was a multitude of foreclosures.

Unemployment rose sharply, and many struggled to survive, with a wave of corporate bankruptcies.

The government took a number of steps to pump the economy, such as cutting interest rates and increasing government spending etc.

However, it took several years — right into the mid to late 1990s — for values to return to their pre-crisis levels.

Similarly in the 1970s end-of-cycle downturn, commercial values fell sharply. Properties were left vacant or underutilised.

Want to read more?

Subscribe to to keep reading this exclusive post.


Não foi possível carregar comentários
Parece que houve um problema técnico. Tente reconectar ou atualizar a página.
bottom of page