I had a very pleasant day today, attending two on-site auctions in the smelly industrial heartland of Perth. The wife would probably say it was just an excuse for me to get out on the motorbike and go for a putt on a beautiful autumn day....and she'd definitely be right.
First property sold in less than 4 minutes of bidding over a half acre block. Six keen and genuine bidders....no trees or sides of cars bidding in this one.
It sold for a rate of $ 274 / sqm, which nearly blew everyone away. Prices for similar sized lots early last year were $ 120 / sqm. You can forget this commonly reported 20% and 30% capital gain figures reported in the mass media....it's a tad more than that out here in the real world. Almost every major industrial REA was there, as there simply isn't any properties for sale at the moment.
Second property sold in less than 6 minutes of bidding over a 6,000 sqm block in a better suburb. About 3 keen and genuine bidders....all fairly old and big fish....one or two vendor bids in this one, and I honestly think the auctioneer did a dreadful job and cost the Vendor about 200K by stopping too early. It sold for a rate of $ 790 / sqm, which was expected. The auctioneer tipped prior to the bidding....."probably around the 720 mark, but if the sun is shining we may get to the dizzy heights of 800 per sqm." Prices for similar sized lots this time last year were $ 380 / sqm.
Third property that I drove past on 7,200 sqm (not for auction) was sold before the closing date of offers for $ 580 / sqm. We bought exactly this time last year a similar property, less than 200m away for $ 282 / sqm.....the market is definitely getting warmer over here.
The older / bigger fish reckon it's about time we saw a jump, as the land prices had been relatively flatlining for the past 5 or 6 years. From this I took that the "median residential" indicator is sometimes a little too broad to base solid economic decisions when buying specific Lots.
First property sold in less than 4 minutes of bidding over a half acre block. Six keen and genuine bidders....no trees or sides of cars bidding in this one.
It sold for a rate of $ 274 / sqm, which nearly blew everyone away. Prices for similar sized lots early last year were $ 120 / sqm. You can forget this commonly reported 20% and 30% capital gain figures reported in the mass media....it's a tad more than that out here in the real world. Almost every major industrial REA was there, as there simply isn't any properties for sale at the moment.Second property sold in less than 6 minutes of bidding over a 6,000 sqm block in a better suburb. About 3 keen and genuine bidders....all fairly old and big fish....one or two vendor bids in this one, and I honestly think the auctioneer did a dreadful job and cost the Vendor about 200K by stopping too early. It sold for a rate of $ 790 / sqm, which was expected. The auctioneer tipped prior to the bidding....."probably around the 720 mark, but if the sun is shining we may get to the dizzy heights of 800 per sqm." Prices for similar sized lots this time last year were $ 380 / sqm.
Third property that I drove past on 7,200 sqm (not for auction) was sold before the closing date of offers for $ 580 / sqm. We bought exactly this time last year a similar property, less than 200m away for $ 282 / sqm.....the market is definitely getting warmer over here.
The older / bigger fish reckon it's about time we saw a jump, as the land prices had been relatively flatlining for the past 5 or 6 years. From this I took that the "median residential" indicator is sometimes a little too broad to base solid economic decisions when buying specific Lots.
