Perth houses are currently as affordable as they were in 2003 and 1996

Floreat being smacked as well. they are even discounting in Perry Lakes now.
Mount Claremont in line with that.
Difficult to seee how Claremont could be exempt.
Do you have the stats?

Unless it's just volume at the expense of price.

could be, I just go by what I see driving around. One came up recently and sold quickly, can't think of anything else close to my place that's for sale now. Then I look at re.com and flick thru the pages and see what isn't under contract.

Interesting feedback on the other suburbs. Dalkeith always use to be $1m+$1m = $3m... alas that was a while back now!

This is interesting, Sanj's post: "I know someone who bought in applecross around 6 months ago, paid I think $4.2m, previous owner paid $6.75m or so 2 years before." That's really good to have grabbed that sort of discount over that particular time. Presumably in 2007 it was around $8m? Half price over 8 years... the dream.

All very interesting...opportunity abounds!
 
I concur with everything sanj has said. City Beach is down at least 20% from the peaks too... and has sat like that for a long time.
 
I concur with everything sanj has said. City Beach is down at least 20% from the peaks too... and has sat like that for a long time.

I think what we are saying here is, places like city beach (which was one that copped it really hard in the gfc) dropped 20-30% ex gfc, then have recently dropped a further 20% from market observation, so we are about 40%+ down on pre gfc levels.

applecross and Cottesloe were the 2 others that really copped it as well.

anyone that leveraged up in these suburbs would be in negative equity... not fun
 
I concur with everything sanj has said. City Beach is down at least 20% from the peaks too... and has sat like that for a long time.

I was told recently that geoff haywards house was on the market in city beach for nearly $2m below replacement cost. He's the guy who started cino to go, luxe bar, the brisbane and now Boulevard so can probably afford the haircut but would still be bloody painful.

I don't follow the city beach market at all though so can't verify authenticity, the person who told me is in the property industry though.

Ausprop Re sk the applecross purchase, no idea what that was worth at the peak, it was sold by a very high profile perth businessman who had a huge win in the gfc. Either way it was a pretty big drop in just a few years.

The Giorgi home in dalkeith that won australian home of the year finally sold recently and even that was below replacement despite all the accolades and the fact it was a really nice home. They probably stuffed up by not building it on the river though.

A friend of mine offered $4.5m for a house asking $5.25m in dalkeith a couple of years ago, git rejected. I believe it sold around $3.7m in the end after being on the market over a year.

Real bloodbath in the western suburbs.
 
Just negotiated a cbd luxury purchase 30% less than 2 years ago. I'm not noticing any increased activity personally

is this sufficiently bedded down to discuss on here? just wondering where you saw value in cbd. I know rents went on a roller coaster ride on cbd arpartments
 
I think it's a good time to be buying luxury real estate though.

That cbd property i mentioned was bought at 40% less than its absolute peak, due to not only market but the presentation. Organising the reno atm, a $100k reno will add at least 300k value imo and I think with a small recovery the buyer should see a 30 to 40% gain
 
is this sufficiently bedded down to discuss on here? just wondering where you saw value in cbd. I know rents went on a roller coaster ride on cbd arpartments

It's unconditional but hasn't settled yet, happy to share more in the future once it's settled.
 

Shadow I really appreciate the information you have provided. It helps put things in to perspective looking at the data. Being an immigrant myself I am still seeing a lot of immigrants settling in Perth for lifestyle reasons. With overseas currencies slowly starting to correct back to normal levels against the $A the migrants are starting to see real value in the Perth property market. I think the currency situation is something that is often over looked. I know a lot of the overseas immigrants have rented in Perth, leaving their funds overseas waiting for the exchange rate to improve. We are at the stage where they are starting to consider transferring their funds. Reserve bank interest rate cuts have a double whammy of making loan repayments more affordable and making the exchange rate more attractive for immigrants. If population growth rates remain at 2 to 2.5% I can really see your predictions coming true regarding the Perth market.
 
Shadow I really appreciate the information you have provided. It helps put things in to perspective looking at the data. Being an immigrant myself I am still seeing a lot of immigrants settling in Perth for lifestyle reasons. With overseas currencies slowly starting to correct back to normal levels against the $A the migrants are starting to see real value in the Perth property market. I think the currency situation is something that is often over looked. I know a lot of the overseas immigrants have rented in Perth, leaving their funds overseas waiting for the exchange rate to improve. We are at the stage where they are starting to consider transferring their funds. Reserve bank interest rate cuts have a double whammy of making loan repayments more affordable and making the exchange rate more attractive for immigrants. If population growth rates remain at 2 to 2.5% I can really see your predictions coming true regarding the Perth market.
Good point about immigrants renting and waiting to buy. I have to think hard to remember the last tenant I had who wasn't an immigrant.
 
i still struggle to see the "value" of City Beach / Floreat / Dalkieth / Pepp Gr.

No public transport, no hub for activity, borderline public amenity - it's becoming more and more homogenised...and people want it to continue?
 
i still struggle to see the "value" of City Beach / Floreat / Dalkieth / Pepp Gr.

No public transport, no hub for activity, borderline public amenity - it's becoming more and more homogenised...and people want it to continue?

Wow - I struggle to know where to start with that. How about:
- There are buses to all these places - and a train line goes past Peppy Grove.
- It's not far from any of these places to a multitude of activity hubs - city, Freo, Cott, Scabs, Subi, Northbridge, West Perth, Osb Park, UWA, etc etc etc - live anywhere else and you maybe close to one but you are a long way from anywhere else.
- These are some of the last places in Perth where you can still get a decent quarter acre block - speaking of homogeneity, everywhere else in Perth is getting homogenised with sub 500sqm postage stamps. Nice to have a choice for low density living somewhere in Perth that isn't miles from anywhere...
- You are not at the mercy of the freeway - if you want to commute from City Beach there is virtually no traffic to the city because it's low density out there and there is only water behind you = bugger all traffic. Having to use the freeway to commute is a massive time waster in Perth around peak hour.
- Public amenity is everywhere - swim at the Beach, walk in Bold / Kings Park, paddle on the river, cruise on your yacht, dinner at the best restaurants in Perth, best public and private schools, hospitals, doctors and other professional services etc etc etc - you name it, the Western Suburbs has it!

Going by the prices, it would seem the market agrees with me...
 
yeh you lost me a bit on this one Aaron, tho I can kind of see your point with Dalkeith - I wouldn't chose there because it is basically just suburbia in an ok position.

What areas do you suggest are better?
 
i still struggle to see the "value" of City Beach / Floreat / Dalkieth / Pepp Gr.

No public transport, no hub for activity, borderline public amenity - it's becoming more and more homogenised...and people want it to continue?

You pretty much just described Ocean Reef :p where you live according to your location :p
 
Some people buy around Dalkeith/Peppy grove/nedlands for the 'prestige' with no financial sense.

A friend purchased an 'investment' in the area for around $2m 5 years ago. Would be lucky to only lose 10% on the purchase. Upgraded to new ppor in mid-$2m. I can't see him getting his money back in the next 10 years.
 
yeh you lost me a bit on this one Aaron, tho I can kind of see your point with Dalkeith - I wouldn't chose there because it is basically just suburbia in an ok position.

What areas do you suggest are better?

sorry john - just saw this - missed it.

I would suggest Mosman Park to be infinitely better placed than City Beach - river and beach, train and bus, public and private facilities, city and fremantle, little activity centres throughout the suburb....

I struggle to understand why Cott is worth SO much more - I mean, it's definitely sans the flats and quickly-disappearing-public-housing but it's not exempt from the crime stats associated with it.

Mosman Park would have to be a very undervalued suburb looking forward 20 years; future-proofed investment and all that.

I'm not asking people to defend their choices of where to live - you live where you live because you damn well want to. The discussion was around investment and where you'd drop a few mil' - well, I can't see the value in City Beach / Dalkeith etc for that kind of money.
 
I actually agree with you there re mossie park aaron, I think it's often been undervalued compared to surrounding suburbs.

Having said that I lived there from 1997 til I think 2004 with my folks, none of us would live in mossie park again. Too cut off from thr city and surrounds

Then again for me 3rd Ave mt lawley I recently deemed too far and mum didn't want to live in subi cos it's too quiet so we're probably atypical

Disagree with you in terms of value in dalkeith, city beach etc.
at the moment a lot of the western suburbs is being sold at some of the smallest premium vs other suburbs. On the weekend I saw a house admittedly on 1500 sqm in duncraig asking mid $2ms, for not a lot more ypu can buy in dalkeith. I'm not a huge fan of dalkeith but I'd buy there any day of the week over duncraig.

I've spent many years around these parts cos of my folks and high school back in the day. It isn't without its faults but there actually is a lot to offer
 
i'm looking at it solely from investment.

i look at the suburb and what it offers a resident, not what it's next to or near to, or what i can drive to from there.

remove the car from any investment equation and you soon see where the intrinsic value lies.

public transport - check.
public parks - check.
public schools - check.
university / tafe access - check.

the rest of it sorts itself out - like private infrastructure always does.

agree with your Duncraig comments - show me a good public school and a uni. Duncraig is very overvalued though - has a stigma about it because of Carine lake and the shops that people seem to love for some reason. I guess it has Glengarry hospital, but it's private.

maybe i'm atypical as well....!
 
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