QUOTE=TheAnalyst;353169]
3. Demand moves the market. Economy development generates demand. I have found apart some suburbs in Perth. The market in WA is going reasonably well.
4. If you invest wise, I believe you still make a lot of money in WA. Why people hate bear share market but the bull market? You buy in growing market not a down market.
5. I believe you read Sundays and Saturdays paper. How crazy about the properties in Trig, Sorrento... Are all these people idiots? I do not think so.
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Dear TheAnalyst,
1. Somehow, your line of thought comes out very clearly in this post and you have argued well for your case.
2. I fully agree with you, in this regard that Perth's growing Economy provide a more solid foundation for its housing prices to rise further in the near future, as compared to the present NSW State Economy as indicated by the recent report that higher household annual income in WA has exceeded those in NSW. Morever the nett population increase in WA has also been increasing at a faster pace in WA in recent times as compared to NSW, though numbers-wise immigration into NSW is still reported to be much higher than those mirating over to WA.
3. However, presently, Sydney has a far bigger population than Perth now and NSW's long term land supply for land housing is much more limited than those in WA. On the basis of the 2 basic housing factors considerations, I believe that the "scarcity" factor is more likely to play out first in the NSW's housing market than in WA housing markets much earlier and a for a longer foreseeable period, all things being equal. (Of course, one can also argue that future housing supply in NSW may stil be higher than those in WA, as more medium/high rise apartment living units can be built per m2 land in NSW as compared to WA's preference for low-rise single residential land/house units.).
4. As an investor myself, I also prefer to buy in a growing market than in a down market, as it is much safer...( but more monies are however in the bust than during a boom??... we make monies when we buy, rather when we sell??).
5. Regarding the trend of more people buying more expensive properties in Perth in recent times, I have mixed feelings and thoughts about the trend itself, at this point in time.
6. Morever, I am presently not well-informed nor quite understand this particular market segment yet for myself at this point in time.
7. Nor do I, at this point in time, truly understand the present trend of seemingly increasing interest and more "demand" and price surge for these expensive properities, both in Perth and across Australia-wide, which I have sort of notice, this same trend for myself too, recently.
8. I agree with you that the buyers are not "stupid", in the first place. But are they "greedy" or "rational" with their recent purchases? Are these the newly-found rich or"get-rich-quick" investors playing the market, having made a lot of monies for themselves from the mining and ASX stock-market booms recently?
9. Is the current buying trend for more expensive properties a basic long term fundamental trend? Or is it a mere a short term "speculative" investing trend? Is this trend sustainable over time, and if so for how long or/and how much longer?
10. Who are these people who are actually buying them and their housing intentions, that are actually driving up the market?
11. Are these buyers, the same rich people who have made a lot of monies during the mining boom and ASX stockmarket booms that are bascially driving up the the high end market Australia-wide? Is the GREED factor been properly factored in for the continued increasing pricer surge in the upper end property market segment in Perrth as well as Australian-wide?
12. OR/AND are these buyers the real long term owners-occupier buyers among the new rich Australians or/and the overseas rich migrants who are flocking over to Perth and to Australia in droves, to relocate their families here, in the near future? If so, what are the real reasons underlying behind this migration of the rich into Perth and across Australia-wide.
13. How will the recent Election outcome affect this trend? Or is the trend emerging as a result of the new confidence in Australia and its political leadership and its growing Australian Economy?
14. What do you and other members further think and say, please.
15. Looking forward to learning from each of you further, please.
16. Thank you.
Cheers,
Kenneth KOH[/QUOTE]
Hi, Kenneth
1. If I gamble on Australia, I think I like to gamble on WA
2. If I want to gamle on WA, I would gamble on high end market.
3. Lower end market always hard because people's pocket is very tight. It is hard to squeeze extra 20/30 grand. However the high end, they can easily find extra 200/300 grand --- because their income was not measured in out normal salary term. The government, the media everyone target the low end.
4. Some real estate agents only sell high end market.
5. regarding the endless use of land in Perth, I probably donot agree with you. Perth land use is limited for urban development if you read the government land use plan. They have the plan on each year how many blocks to be released, also the infrastructure is not in place by one day.