Munster (Perth)

[gooram]

Hi,

I'm seeking some feedback from any residents or investors in or around Munster in Perth.

It's immediately south of the new Coogee marina however contains the Woodman Point waste water treatment plant.

I'm particularly interested in a large block to the north east of the plant but am obviously concerned about the odour from the sewerage works, and future expansion of the plant, and whether or not the land will ever be deemed suitable for higher density housing.

Does anyone live or invest in Munster or south Coogee and what are your experiences with the treatment plant and the location in general. Obviously alot of good things happening down there with the new marina...

Thanks,
Gooram

 

[harb]

I lived near the Barrington/Stock Rd intersection for about 15 years (84-99) and most of the time there was no smell. There were a few days a year when the stench was really bad, some from Watsonia, some from the sewage treatment plants and some from the cement kilns near Kwinana. Depending on the wind and location that you are looking at you can expect to get some or all of the above bad odors. Most of the Munster/Spearwood border (East of Rockingham rd) is stink free for the best part of the year.
Hope that helped you a bit.

Not that I want to put you off or anything but just in case you are not familiar with the area there is a bit more info.
The area where the "good things are happening" was a wasteland until recently because of the ground and water contamination. Up to the late 80's it was used either as holding area for sheep waiting to be shipped to Middle East and tanneries processing sheep skins. There was so much cyanide, insecticides and poisons leached into the ground I didn't think they would ever open up the area for development. Also rumor has it that during the late 70's dumping of drums and transformers containing PCB's straight from the jetties was common practice.Can't tell you if its true or not as I didn;t witnessed it myself but the old guys I knew that worked at the old power station would not eat the fish caught there.
Then again I used to work in South Freo next to the old Bradford-Kendall foundry and that was almost as bad. Ground full of chemicals, raw sewage floating back onto the dog beach,stench from the tanneries,etc. Didn't think much of that area even as late as mid 90's but look at it now....$1mill+ for a small block of land. I just wish I bought the old Rail yards.

 

[gooram]

Thanks Harb, that's all good information.

Yeah I'm hearing ya on the 1 mill+ blocks going now in the marina development. I suppose that sentiment sum's up the reason I'm even contemplating this area... a 3000sqm block for 600k so close to this development and the beach is dirt cheap atm. It holds a lot of potential if the zoning changes and the smells can be contained.

With great risk comes great reward right? I'm sure there's another side to that saying but it escapes me right now

 

[Ausprop]

i wouldn't like to be reselling one of those blocks in this market. Talk to the buyers of the Steves hotel development to get an understanding of what it feels like to get caught up in off the plan hype... as the local paper coined it, "bloodbath on broadway"

 

[harb]

I'm guessing you are looking at something near the Rockingham Rd/ Stock rd junction. Haven't been in the area since the waterski park was developed but I remember quite a few large properties at the start of Phoenix rd. Could be worth driving around to see if there is anything left in there, not only close to the marina but also to South Freo.

 

[gooram]

Yep that's the area, West Churchill Rd in the corner between the two lakes... I'm thinking the combination of the smell from the plant and the smell and the mozzies from both of the lakes which become a bit swampy in the summer apparently creates far too much downside for me. I guess it's reflected in the price but I'm not sure that I want to take on that much risk.

 

[gooram]

i wouldn't like to be reselling one of those blocks in this market. Talk to the buyers of the Steves hotel development to get an understanding of what it feels like to get caught up in off the plan hype... as the local paper coined it, "bloodbath on broadway"

Do tell....

 

[Ausprop]

they were snapped up OTP in a buyer frenzy 2 years ago... I didn't even hear about the release before they were all gone, prices between about $2m and $4m. they have just come up to settlement and about 14 of the 37 are on the market. last weekend a liquidation sale was held for one unit that originally sold for $1.9m, it was passed in at $1.05m and the agent insisted that the owner needed an unconditional offer by the next day (30 June). it was reported in the local rag that it sold for $1.5m, so the original owner has lost $400k, plus stamp duty of about $100k, plus loan or financing costs. The resales in the building are now destroyed and it is quite controversial with the agent being accused by other owners of underselling it and he responding with 'the owner can do whatever the hell they like!'.

 

[Tony13]

i wouldn't like to be reselling one of those blocks in this market. Talk to the buyers of the Steves hotel development to get an understanding of what it feels like to get caught up in off the plan hype... as the local paper coined it, "bloodbath on broadway"

Interesting...

http://www.postnewspapers.com.au/20080517/news/001.shtml

 

[gooram]

Great article... highlights the dangers of 1) buying at the peak of the cycle 2) buying off the plan 3) speculation 4) over-committing.

For all those that have only ever seen property prices go up, and think that you cannot lose on property... great article to read.

 

[yadreamin]

they were snapped up OTP in a buyer frenzy 2 years ago... I didn't even hear about the release before they were all gone, prices between about $2m and $4m. they have just come up to settlement and about 14 of the 37 are on the market. last weekend a liquidation sale was held for one unit that originally sold for $1.9m, it was passed in at $1.05m and the agent insisted that the owner needed an unconditional offer by the next day (30 June). it was reported in the local rag that it sold for $1.5m, so the original owner has lost $400k, plus stamp duty of about $100k, plus loan or financing costs. The resales in the building are now destroyed and it is quite controversial with the agent being accused by other owners of underselling it and he responding with 'the owner can do whatever the hell they like!'.

I have heard a similar situation is now occuring with the Penisular Apartments here in Mandurah Ausprop. Aparently there is quite a lot back on the market after the frenzy of OTP at the peak of the boom here in WA. Not sure how the re-sales are going. I would quess the carnage on the stock market has affected a lot of the initial buyers.
cheers
yadreamin

 

[Ausprop]

yeh i think i have seen a couple of the desperately worded ads. At least with Steves it is in a premier western suburbs area, whereas OTP hype in a falling market like Mandurah would be true despair