Auctions - Perth Market

Hi All
In my area I can't believe that there are about 6 auctions coming up, I find this very unusual. Anyone finding the same thing happening in their area.

I always thought auctions did not work for the Perth market.
 
Mt Lawley
I attended an auction last Saturday, I was told there were a couple of serious buyers, but the property got passed in, vendors bid. I may attend another this weekend, not looking at buying just curious to see how they go.

Cheers, MTR
 
I noticed it as well, Ive been looking around Bedford / Inglewood. Maybe the agents are struggling to price them properly themselves?

I can't see much growth in Mt Lawley for quite a while though it's already so expensive?

Chomp
 
Hi Chomp
I see Mt Lawley as excellent value compared to some other inner city locations.

Well located units/townhouses in Mt Lawley are flying out the door.

The real bargains are the upper end. Some properties have sold for land value, free period home.
I am not sure where the market is going from here though but maybe renewed confidence will help drive prices up, I hope.

Cheers, MTR
 
Good value compared to other over priced areas?

Your right they are selling pretty quick, nothing in good condition hangs around long.

I agree re the upper end, but by the time you buy and develop how much margin will you have.

Dont paint me as a doomer I just think prices are too high at the moment, for me anyway. Wages need to catch up.

Those five brand new three storey town houses on the corner of third and beaufort, does anywone know the asking price?
 
Have not seen a for sale sign out?
I think this builder has built quite a few in the area and I think he does not sell.

I would guess anywhere from $850,000+, townhouses nearby sold for around $750,000 but they were pretty average looking.

Cheers, MTR
 
in suburbs such as mt lawley I don't believe wages have any effect or impact - it's like looking at a Ferrari and saying the price must come down because it's unaffordable. When I consider affordability I consider it in light of a far flung new estate with a "new impressions" 4x2 plonked on it.
 
Good value compared to other over priced areas?

Your right they are selling pretty quick, nothing in good condition hangs around long.

I agree re the upper end, but by the time you buy and develop how much margin will you have.

Dont paint me as a doomer I just think prices are too high at the moment, for me anyway. Wages need to catch up.

Those five brand new three storey town houses on the corner of third and beaufort, does anywone know the asking price?

perfect example was that "opportunity" thread i posted.

reserve is $1.8mil, but needs to be $1.2mil apparently to make your 25%.

so clearly there's something fishy with upper end pricing - dunno from which end though.
 
in suburbs such as mt lawley I don't believe wages have any effect or impact - it's like looking at a Ferrari and saying the price must come down because it's unaffordable. When I consider affordability I consider it in light of a far flung new estate with a "new impressions" 4x2 plonked on it.

ok so your talking the high end of Mt Lawley? there are many types of property in Mt Lawley, it is quite diverse, more so than alot of suburbs.

I was talking high end as well when I said it was too high, land is around $1500m2 but I can go 1-2km down beaufort st and get it for $750m2. Sure I dont get the name but inconvenience and safety around Bedford or edge of Inglewood (Bayswater & Maylands cut inside the railway line as well) is it really that much difference. So maybe Bedford etc... have to come up a bit?

Hey I could be wrong and Mt Lawley will keep going up at the crazy rate it has since 2002 it has levelled of a little since 2007.

Wages will always have an affect, whether is direct payg or from investments in my opinion how can they not?, I didnt say prices have to come down, I said wages have to catch up :)

Chomp
 
Hi Chomp
perhaps you are correct when it comes to developing sites in Mt Lawley.
There are a couple of builders who buy huge corner lots and develop and I would say the margins must be OK but average Joe/Jane could possibility not compete with this.

I think there are some great opportunities to pick up some bargains and you may be surprised about some of the prices.

Recently a period home, nice tree lined street was on market for approx 12 months (divorce scenario), and apparently there was a caveat on the property as someone over East was owed money.

It needed a reno was listed at $1.29M, 590 sqm2 block, sold at I believe $895,000, the couple that purchased this property upgraded from Bayswater. They told me that they could not go higher and due to the caveat it almost did not go ahead. The RE agent did not initially accept their offer, but phoned them a day later with the good news.
I would say by the time they do the reno it would be around $1.5M in today's market.

Another property which has been on the market for quite some time (6 months) started off at $1.65M great location, some city views, needs a reno, but neat and tidy is now under offer I think around $1.3M.

I lived in Mt Lawley for about 16 years now and in a booming market these well located don't hit the market as they get snapped up.

If anyone is in a position to upgrade or just looking at a reno, I believe there are some great opportunities at the moment but I do feel the market will start to move as I am now seeing more sold signs.

Cheers, MTR
 
Hi Chomp
perhaps you are correct when it comes to developing sites in Mt Lawley.
There are a couple of builders who buy huge corner lots and develop and I would say the margins must be OK but average Joe/Jane could possibility not compete with this.

I think there are some great opportunities to pick up some bargains and you may be surprised about some of the prices.

Recently a period home, nice tree lined street was on market for approx 12 months (divorce scenario), and apparently there was a caveat on the property as someone over East was owed money.

It needed a reno was listed at $1.29M, 590 sqm2 block, sold at I believe $895,000, the couple that purchased this property upgraded from Bayswater. They told me that they could not go higher and due to the caveat it almost did not go ahead. The RE agent did not initially accept their offer, but phoned them a day later with the good news.
I would say by the time they do the reno it would be around $1.5M in today's market.

Another property which has been on the market for quite some time (6 months) started off at $1.65M great location, some city views, needs a reno, but neat and tidy is now under offer I think around $1.3M.

I lived in Mt Lawley for about 16 years now and in a booming market these well located don't hit the market as they get snapped up.

If anyone is in a position to upgrade or just looking at a reno, I believe there are some great opportunities at the moment but I do feel the market will start to move as I am now seeing more sold signs.

Cheers, MTR

Hi MTR
Thats what I mean. I can buy a block in Bedford etc.. for $300k same size nearly and build a very nice 4x2 for say $250k and and its only a k or so down the road, for 300k cheaper.

MTR I have lived in MT Lawley as well, for around 7 years and I do like the area, I still cant see prices rising much.(would help me out if they do :) )
Chomp
 
I'm always amazed at the off-market sales that seem to happen in Perth. By that I mean a house will sell without being advertised.

How on earth can a vendor know that they're getting the very best price if the agent doesn't advertise it?

If I put a house on the market and the agent wrote up an offer within a day (and I believe that happened a lot 2 years ago) then there's no way I'd believe that I couldn't get a slightly better offer if I just keep it open a little longer.

I've even heard stories of potential buyers who were really keen on particular houses, only to find that they'd been sold without been advertised. If these stories are real, then it's virtually certain that the vendor didn't always get the best price.

I spend a lot of time in Perth (outlaws are there) and I love the place, but I can never quite understand the way things are done in WA.
 
You never get the very best price though do you? What is the best price?

It all depends on how long you are willing to wait for a better price. If you are upgrading or have a subject to sale offer, i guess there's a lot of reasons why you wouldn't want to wait.

Something I did was negotiate the agents fee down iff I accepted the offer she presented (after 1 week). She accepted so I took the offer (which I was happy with anyway). Possibly I could have got a better price, but the reverse is also true.

Agree with you about the way things are done in Perth though... it's certainly a little strange out here. Can only assume its the isolation.
 
You never get the very best price though do you? What is the best price?

Well maybe I'm a parochial Victorian, but if I was selling, in a half-decent market, I'd be satisfied if multiple bidders at an auction were bidding for my house that I got the best price.

Of course auctions aren't always the best option for all property sales, especially if the market is sluggish, but the transparency I get from it would give me a great deal of comfort that the agent wasn't ripping me off by trying to cajole me to take the first half-decent offer presented.
 
I'm always amazed at the off-market sales that seem to happen in Perth. By that I mean a house will sell without being advertised.

How on earth can a vendor know that they're getting the very best price if the agent doesn't advertise it?

If I put a house on the market and the agent wrote up an offer within a day (and I believe that happened a lot 2 years ago) then there's no way I'd believe that I couldn't get a slightly better offer if I just keep it open a little longer.

I've even heard stories of potential buyers who were really keen on particular houses, only to find that they'd been sold without been advertised. If these stories are real, then it's virtually certain that the vendor didn't always get the best price.


Fair call if the market were booming.

I am guilty of selling my last property 12 months ago prior to listing, this is why I accepted the offer....

1. Cash/unconditional
2. At least $75,000 over market value
3. Depressed market, too much stock, (demand/supply)
4. Who wants to deal with home opens and the makeovers required.

I guess it is not all black and white and some vendors will do their homework.

Cheers, MTR











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