Brisvegas 21% cheaper than Perth

[GIDDO]

See the below exerpt of article in The Australian.

How the heck can this be sustained??

Perth prices (median) are now more than 21% higher than those in Brisbane.

What is happening?
Are average WA incomes that much higher?

If the incomes are not 21% higher then how do the battlers get on?

Are big money wages from the mining boom causing all this.
If so, won't this have the effect of making Perth a city of HAVES and HAVE NOTS?

Darwin is much the same.

Does this mean that Brisbane and Melbourne and Melbourne can expect interstate migration a la Sydney to Brisbane a few years ago?

Any thoughts













The Australian — PropertyRate rise 'enough to ease prices'
David Uren and Anthony Klan
May 06, 2006
Fuelled by cash from the China-led resources boom, houses in Perth and Darwin are now more expensive than those in Melbourne and Brisbane.

According to Australian Property Monitors, Perth prices surged 5.4 per cent in the March quarter, notching up 24.8 per cent growth for the year, while Darwin house prices rose 3.3 per cent in the quarter. But low affordability continues to cripple property markets on the eastern seaboard, with prices in Sydney, Melbourne and Brisbane falling by 1.1 per cent during the quarter.

In the March quarter, east coast apartments were hardest hit, with prices falling 2.4 per cent in Brisbane and 2.1 per cent in Melbourne. The median house price was $396,000 in Perth and $359,000 in Darwin, compared with $347,000 in Melbourne and $326,000 in Brisbane.

 

[kierank]

The median house price was $396,000 in Perth and $359,000 in Darwin, compared with $347,000 in Melbourne and $326,000 in Brisbane.

I was in Mackay (Qld) this week for work. The prices for houses seemed about the same as Brisbane. I couldn't believe it. Checking the latest API mag, the median price for Mackay is $314,000 for Feb 2006 (I don't have the March 2006 figure) so my gut feel was close to be correct.

While I was in the pub having dinner one night, I had two young guys (20-25 years old) from the mines at the table next to me. I overheard them saying that they were being paid $1,000 per shift (12 hours).

Now I know why the prices are the same as Brisbane.

 

[D.T.]

Maybe they got the Brisbane and Perth numbers around the wrong way

 

[Aceyducey]

Depends on the duration of the resource boom.

It's not an unusual occurrence. Read up on the effect of the gold rushes in Victoria on housing (and other) pricing.

When booms come to an end, so does the party.

Cheers,

Aceyducey

 

[Peter Parker]

Maybe they got the Brisbane and Perth numbers around the wrong way

They could well have.

A copy of a newspaper article received last week (either in 'The Worst' or 'Sunday Crimes') states that Perth's median house price in the March quarter was $368k.

That same article mentions rental returns for units were 4.22% compared to 4.49% for Sydney and 4.63% for Melbourne.

Peter

 

[Ausprop]

the reply from REIWA was that their own numbers were quite different (on th elower side) - something about using different statistical analysis....goes to show the danger of statisitcs. I doubt the numbers reported are too far off in the future though, there is nothing for sale and nothing to rent which can only mean one thing. With mulitples of huge long term contracts being signed across a range of commodities these pressures aren't going to go away so we are looking for a supply solution (unless immigrants just forget the idea and stay put which would take a lot of demand pressure off), at this point I would tend to run with the state govts estimates that it could take a few years to quench. land subdivisions and house construction don't happen quickly. someone told me mirvacs just shelved a large land subdivision as they couldn't source anyone to do the site works - anyone know anything about it? would be a shame if it is true.

 

[redwing]

Hey Ausprop (slightly off topic but..) did you see Len Buckeridge has done a few Concrete Tilt Panel Residential IP's, supposedly quicker than waiting for brick layers..but more expensive and not really worthwhile unless you're going three stories according to Len?

 

[Ausprop]

yeh - I didn't know he was the main driving force for concrete slabs. no doubt we will move away from double brick but to what is the question?

 

[redwing]

Maybe Colourbond like Northern WA?

 

[Kennethkohsg]

someone told me mirvacs just shelved a large land subdivision as they couldn't source anyone to do the site works - anyone know anything about it? would be a shame if it is true.

**************************************
Dear Ausprop,

Are you referring to Mirvac's BridgeWaters Lifestyle Resort Project for the 45s (yes and not 55s or 65s for the usual retirement villages) in Mandurah which was temporarily shelved as I was last told 2 weeks ago or some other projects beside their Seascapes and Meadow Springs Land Releases?

Looking forward to your kind clarifications, please

Cheers,
Kenneth KOH

 

[kph]

yeh - I didn't know he was the main driving force for concrete slabs. no doubt we will move away from double brick but to what is the question?

Was discussing this with a builder recently, and he said it was still cheap/cheaper to use dbl brick.
Probably the use of more brick/veneer may come into vogue if it is ever introduced.
Remember seeing Minister McTiernan commenting that W Aussies have to get over their 'love affair' with dbl brick, which annoyed me no end, as the Mum and Dad home owner is not give that choice at the moment.
All you get is 'which face brick do you prefer' or 'would you like face brick or rendered?'

The builder had a different view, in that posed with the same question, his response was that it would be hard to convince the customer to go to veneer. The perception was that it was 'cheap' and therefore would not popular, and therefore too risky for the builder to promote.

So its a chicken and egg situation. Someone has to bite the bullet, and stop picking on the customer...ie... give them the choice and see how they respond.
Over time it will catch on and the market will change.

Same way they promote a concrete slab floor as being 'strong and silent', which insinuates that alternative flooring is not strong and also noisy.

If the brick veneer incorporates good sound and themal insulation in the gap, at a reasonable cost, there is no reason why it should not be adopted as well as become popular.

BUT if it does come down to cost ( ie...cheaper to whack up 2 leaves of brick/block vs putting up a frame to attach the gyprock)...then I guess our love affair with dbl brick will continue.

Len, to his credit has experimented with alternatives, including aerated concrete blocks, ( thermalite) etc, but they had problems with it cracking so it was abandoned in the end.
It all depends on how it is sold and marketed as well......right now we are sold on dbl brick.

kp

 

[kph]

someone told me mirvacs just shelved a large land subdivision as they couldn't source anyone to do the site works - anyone know anything about it? would be a shame if it is true.

I heard the same story last week but it was "multiplex' that was used.
Mirvac sounds more accurate.

I heard it from MLG in Perth. Apparently its well located land close to the CBD ( within 10 kms)