Is Perth Underpriced

[Glenn]

Jeez,

My thoughts are that Perth property is still cheap compared to other cities in Australia due to:

1. Strong economy = investor & first home buyer confidence

2. Strong employment = more $$$ flowing around the economy

3. Best weather in Australia

4. Wages, after tax are virtually the same as everywhere in the country

5. Resources boom = heaps of guys & girls that work on mines on a fly in\fly out basis are now going to be making > $100k per year

6. Asian ecomomies recovering = more students & business coming to Perth (because we are in the same or close to the same time zone as a lot of Asia and at most 6 hours away)

 

[Glenn]

Bugger....I can only vote once....

 

[Aceyducey]

There's no objective options for saying, no Perth isn't overpriced, so I can't respond.

Cheers,

Aceyducey

 

[not a sheep]

When I chatted with Independant Valuers I was advised:

Perth is a very strong economy in industry - ESP OIL Refinaries off shore.

There are More Millionaires Per Capita than anywhere else in Australia.

Personally Some Area's are on Par with Sydney Pricing (City Beach is a good example)

Other areas are way below the cost of Sydney & Melbourne.

The Income that is provided albeit a little less is more than compensated by the low cost of housing near the CBD 10 - 15 KM Radius.

I still firmly believe Perth has room to move as an exodus of investors from NSW occurs over the next couple of years, not to mention, the Baby Boomers potential for Flogging their 600 -700K house in Sydney or Melbourne, buying an equivelant 300-400k House in Perth and have play money left over.

I have invested in Perth.

Lets hope the crystal ball doesn't crack.

Regards,

NAS

 

[Puppeteer]

It seems that the descriptions for numbers 1&2 are around the wrong way.

I'm with Glenn with this one.

It depends upon where in Perth you are looking.

There are some very undervalued suburbs, and some that are overvalued.

WA's economy is going well at the moment, with probably at least 2-3 years to go of the current resources boom (though that doesn't affect Perth all that much).

There's lots of redevelopment, villas and units/townhouses being built at the moment. I think inner city is getting close to saturation, but >8km's from the city centre there's still lots of good buy's to be had.

 

[Glenn]

It seems that the descriptions for numbers 1&2 are around the wrong way.

Ahhh....yes they are!

Glenn

 

[Rixter]

The question that should be asked is NOT "Is Perth Underpriced?" but should be " Is Perth currently Underpriced compared to Perth?"

I know its at its lowest price of all time on record compared to Sydney pricing - is there a cryptic message in that?

 

[Boyler_Room]

The question that should be asked is NOT "Is Perth Underpriced?" but should be " Is Perth currently Underpriced compared to Perth?"

AM I missing something in this statement? Or did u really mean you want to compare Perth with Perth?? (and then go on to compare with SYD??)

Regards,
Boyler Room

 

[Rixter]

Br,

The point I am making is how can "that question" be asked without having something (ie Perths Estimated Median) or somewhere (ie Sydney) to compare it (Perth) to - how else would you know otherwise? I then went on to comment about Perths Median Price in relationship to Sydneys Median Price being at an all time low. In other words it leaves room for Perths Median to increase back up in differential line to normal acceptances.

 

[always_learning]

This is a good point! I purchased in Melbourne in the Mid 90's and part of the reason/justification was that I was living in Sydney and came to the belief that the "gap" between median prices was too high! My thinking was that Sydney was not worth double the price of Melbourne (ie. I compared Toorak with Mosman, Calton with Paddington and Camberwell with Chatswood).

I believe now the Melbourne/Sydne "gap" has is reduced to the typical average historical differences.

Unless there is clear evidence that Perth is going down the gurgler, then I think that the "gap" in pricing will return to historical averages.

 

[Aceyducey]

hmm - so far 50% of poll respondents aren't even aware of where Perth is....that's a precondition for a greed-led boom isn't it

Cheers,

Aceyducey

 

[Rixter]

Acey,

Not unless the 50% voted for the same reason as I did - that being to maintain it as Australias best kept Secret to live and invest in!

We dont just let anyone in

 

[Aceyducey]

We dont just let anyone in

Though the people let in have at times been questionable...Alan Bond for instance

Cheers,

Aceyducey

 

[keg75]

Alan bond did do some good things for aus and in particular freo/ perth. americas cup would have brought in millions to the australain public and businesses in the area, I think it would have helped put Australian in more of a favourable light from a toursim aspect.

Alan bond may be dodgy but, I think he was the scape goat for all the other DODGIER buggers ie brian bourke and his best mate Lorry connelle (who i believe owed close to 300million in unpaid taxes at the time of his untimeley death)....

Anyway I was quite young when that saga unfolded, and some synapses aren't what they used to be so... don't Flame me about alan bond...

cheers keg75

 

[geoffw]

Then I'd better not mention Rose Hancock.

 

[Aceyducey]

Alan bond may be dodgy but, I think he was the scape goat for all the other DODGIER buggers ie brian bourke and his best mate Lorry connelle (who i believe owed close to 300million in unpaid taxes at the time of his untimeley death)....

Weren't all those dodgier buggers based in WA too

Just stirring Keg!

Cheers,

Aceyducey

 

[Rixter]

Acey,

Yes, all of them worked for me at one time or another

 

[keg75]

haha

ROFLMAO

Rose Hankocks ad oportunist she took the gamble and it paid off - Imagine Gina reinhardt face when she heard rose got it all.....

reminds me of the movie "Big Daddy" with Adam Sandler - the ex-girlfriend and the wrinkley old boy friend who works at hooters as a manager .... OOH Wrinkles!!

something about WA and the entreneur spirit - hopefully I can keep on the right side of the tracks...

have agood night all

keg75

 

[Kennethkohsg]

Hi there,

I firmly believe that the Perth property market is still generally under-valued as compared to the other States.

I've just completed building 2 houses at the Anchorage Estate in the coastal suburb of Rockingham WA6168. Both the 2 houses were quickly rented out. The house values have also increased by more than 40% each in 2003.

I am further investing in 2 more pieces of vacant lands to build another 2 new houses there in the same Anchorage Estate at Rockingham this year, having sold off my last 2 properties in the Goldcoast property market in August 2003 and November 2002 respectively. This is becuase I believe that the Rockhingham coastal suburb is presently undervalued and its land values likely to sky-rocket in the near future, following the physical commencement of A$1.2 billion new railway line from Perth-Rockhingham-Mandurah and other multi-millionaire dollars development projects in the same area.

regards,
Kenneth KOH

 

[paulie]

Q Is the Perth property market under valued?

A Today no, but tomorrow yes.

A better question would probably be is the short/medium/long term demand increasing faster than the short/medium/long term supply of Perth property, as this will determine future capital growth rates.

As far as I can tell (I am a Kalamunda real estate agent) the amount of Buyers - the demand for residential property - has slowed from mid last years peak but the amount of new properties coming onto the market has also slowed, possibly even more than the reduction in the amount of buyers. So I'd be fairly confident of predicting good capital growth rates of about 8 - 10% for the next 12 months.

Cheers

Paulie