Perth - madness.

Is the age of some of the dwellings in Rivervale going to make this hard to achieve seeing we really don't want a knock down job but rather a good value 4x2 or above?

There's lots of new homes going up... popular trend in rivervale, aside from villas, is subdivide and build 2 new homes... so there should be plenty of what you're looking for, however if you want a full size block, you'll most likely have to knock down and build... and fork out the spon!
 
Just attended two auctions this morning - both small vacant blocks zoned commercial with varying plot ratios. Vendor for both was the Mains Road Dept, excess dirt "made" out of their by-lanes and laydown areas. Titles not available yet.

One was 1,210 sqm in Northbridge literally on the exit to the tunnel. Sold for $ 2.7 MM after a staggering 50+ bids. $ 2,231 psm.

The other was 801 sqm in West Perth, on the corner of Prowse and Thomas Streets. Sold for $ 1.97 MM after about 40+ bids. $ 2,459 psm.

Both buyers (young men in the 30's) were absolutely over the moon.

Lot's of demand out there.....it looks like we have another 3 or 4 years worth of strong bull run in this type of dirt. Don't know how that equates with the ressy stuff - probably no link at all.
 
had a look 575m commercial block in bronte st east perth this morning. next to the police traffic place, set back from wellington st. commercial zoned.
1.25mill....$2170 sq'm.
no thanks.
 
Wow guys, too heavy for me. Looks like I'm done in WA this cycle... :(

Go North young man.... can't put it any simpler than that.

Kevin


Great thread by the way.....605 and counting.
Guess it will die when the local WA market also dies.
 
Received some paperwork for new land in an area near the swan valley that will ultimately house 50,000 people..interesting sales system...

LOT XYZ (700m2)
NAME
ADDRESS
PH
MB
Minimum Purchase Price $280,000.00
Price you wish to include for your registration $____________________

Order of Preference __

Terms of Offer etc etc etc


Terms and Conditions of Sale include these amongst others:


*The successful registrant will be selected according to the best price and terms on the registration form (plus mustenter into a contract within 7 days).

**Itis recognised that registration doesnt bind the registrant and doesn't represent a formal offer
 
The higher prices for residential blocks simply convinces me even more that the affordabilty answer lies in smaller parcels of land and good insulation in the homes being built:). Makes my 350 and 400 sqm blocks easy to sell. Roll on higher density!!

Massive water guzzling lawns are over rated anyway. Considering how much land now costs here per square metre it certainly makes it less attractive to invest so much in big gardens.
 
It was on page 8 of Saturday's paper, Rixter. Article mentioned that the June quarter's average land price for Perth was ~218k and for the September quarter ~305k. Didn't seem like any typos. Maybe the market (I'm thinking type of block - size/location) has changed somehow?
 
The higher prices for residential blocks simply convinces me even more that the affordabilty answer lies in smaller parcels of land and good insulation in the homes being built:). Makes my 350 and 400 sqm blocks easy to sell. Roll on higher density!!

Massive water guzzling lawns are over rated anyway. Considering how much land now costs here per square metre it certainly makes it less attractive to invest so much in big gardens.

Tizzy,

Gives me more reason to buy larger blocks.

regards,
 
Amazing! 40% rise from one quarter to the next. And on a rising sales volume?
*****************************
Dear Peter,

1. I do not recall reading any land sale figures given in the same report. What are your land sale figures that you have or are referring to?

2. Surprisingly, the same article also went on to report that present land shortage crisis In WA/Perth has improved and eased off with more land now available for sale in the market from 337 lots in June 2006 quarter to 730 lots in the Sep 2006 and that is land shortage crisis bottleneck is expected to be resolved in 12-18 months time.

3. Nigel Satterley, Satterley Property Group Chief, as well as REIWA.com have both acknowledged that the Perth property market has already shifted from a Seller's Market into the Buyer's market situation since the 2nd interest rate increase in August 2006. This is notwithstanding the present land supply shortage.

4. I wonder if this is truly indeed so? And if truly so, I wonder what the actual reasons for their occurences and why?

5. Interestingly, Kevin Young's article in the same Weekend Real Estate Lift-out in the West Australian Newspapers on 18th November 2006, was not mentioned/discussed at all.

6. As the founding President of the Investors' Club Network in Australia, Kevin Young is claiming that based on the available ABS data, there is some "over-building" of 1000 new properties in WA/Perth property markets in 2006.

7. He is further forecasting that the the same market will be over-supplied by some 2,800 homes in 2007 and some 4,500 homes in 2008.

8. For your kind update and further comments/discussion, please.

9. Thank you.

regards,
Kenneth KOH
 
I believe current statistics on WA market are substantially flawed ---- I mean it has not been carefully analysed the data.

I do not believe the medium price in Perth anywhere reaches $492k, or the Sep quarter up 10%, the land price up %40.

As common sense, when you come cross these kind of figures, the reporters should validate the data ----- to check why? whether any data problems? why block up %40? could be the land relased focused on certain areas? If that perticular medium block happens to be on the beach, it could up 100%.

I do not see 50% of the suburbs their medium prices reach $492k.
 
I believe current statistics on WA market are substantially flawed ---- I mean it has not been carefully analysed the data.

I do not believe the medium price in Perth anywhere reaches $492k, or the Sep quarter up 10%, the land price up %40.

As common sense, when you come cross these kind of figures, the reporters should validate the data ----- to check why? whether any data problems? why block up %40? could be the land relased focused on certain areas? If that perticular medium block happens to be on the beach, it could up 100%.

I do not see 50% of the suburbs their medium prices reach $492k.
The Analyst,

Firstly, Im not sure exactly what you analyse, but its "median", not "medium" price. Any first year Uni stats student can point you in the right direction for a reference.

Secondly, if you disagree with something thats been posted, then instead of invoking "common sense" as your rationale for discounting the results (not terribly "analytical", is it...), why not post the results of your own research, or research that validates your divergent point of view?

As an "Analyst", what publications and statistics are you basing your argument on?

Jamie.
 
It was on page 8 of Saturday's paper, Rixter. Article mentioned that the June quarter's average land price for Perth was ~218k and for the September quarter ~305k. Didn't seem like any typos. Maybe the market (I'm thinking type of block - size/location) has changed somehow?

Yeah I read it on Saturday Pete. I would like to see the how they came to that conclusion.
 
1. I do not recall reading any land sale figures given in the same report. What are your land sale figures that you have or are referring to?

Ken,

I don't have any land sales figures & wasn't referring to any - I was asking a question. Somehow I had an idea the volume was rising - maybe I was mixed up with the rising supply?

In conversation yesterday I heard that Mandurah sales have slowed to just about a standstill.

regards,
 
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