Perth - madness.

Re land prices, REIWA article mentions
- 23% (cost) increase in Sept qtr, after
- 22% cost increase in June qtr. And
- 77% cost increase from Sept qtr last year to Sept qtr this year

Cheers,
 
So land's not increased what the article lead us to believe in the last quarter. :mad:

But it was in the paper so it must be true ;)
 
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?
**************************
Dear Pete,

1. I was also watching out for the land sale figures when reading the median land price increase report myself, so as to see which way the Perth property market is indeed heading again at the end of the Sep 2006 quarter.

2. Secondly, I seem to read/see more lands being advertised for sale recently after the November 2006 interest rate increase.

3. Locally, this is also the same trend that I see as occuring in the Anchorage Estate.

4. With the national housing price still reported as increasing at 9.5% in the Sep 2006 quarter and a tight labour market with increasing wages, I am personally not ruling out the possibility of a 4th interest rate increase in Feb 2007.

5. This is despite the Perth property market having started to siginificantly slow down recently since the second interest rate increase in August 2006.

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

7. Thank you.

regards,
Kenneth KOH
 
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Thank you for your comments, Ken.

I currently think (aka guess!) interest rates rises have reached the end of the current cycle. I think recent rises have done their job. Maybe this would be best discussed in a separate thread if you want to explore this topic?

regards,
 
Dear Peter,

1. I believe that REIWA.com report that the Perth median land price has risen to $265,000 is more accurate and reliable than what is being reported in local Western Australian newspapers, although the latter has claimed its data was based on DOLA sale data.

2. Unless I have seen the original data from DOLA myself, I will decide to use the $265,000 as Perth median land price for Sep 2006 quarter as my own reference point, for the time being.

3. Based on REIWA.com's reported reference of 77% land price hike over the last 12 months, I will take it that the Perth median land price was only $149,717 as at Sep 2005.

4. Do you happen to have the Perth median land price data for Sep 2004, Sep 2003 , Sep 2002, Sep 2001, Sep 2000 as well as Sep 1999 so that we can see how the Perth median land price have actually moved over the last 7 years?

8. Alternatively, are you able to point me where to look for these kind of annual data, to use for my own market analysis, please.

9. Thank you.


regards,
Kenneth KOH
 
4. Do you happen to have the Perth median land price data for Sep 2004, Sep 2003 , Sep 2002, Sep 2001, Sep 2000 as well as Sep 1999 so that we can see how the Perth median land price have actually moved over the last 7 years?

8. Alternatively, are you able to point me where to look for these kind of annual data, to use for my own market analysis, please.
Ken,

As earlier, I have no land sales figures. You might try REIWA.

regards,
 
Dear Pete,

1. In the same REIWA.com.au report,Rob Druitt, as President REIWA, was reported as saying that there are now "more than 20,000 dwellings under construction".

2. With such a high level of housing constructions presently on-going, I can now agree with Kevin Young, that the Perth property market is indeed in an "over-supplied" market situation by more than 1,000 dwellings in 2006.

3. No wonder, the Perth property market has "suddenly" become a "buyer market" from its previous "Seller" market situation a few months ago.

4. With more over-building likely to take place in 2007 and 2008, a much slower Perth property market can be expected in the near future.

5. Against this potentially grim picture, consequently, we can now expect to see more investors exiting out of the Perth property maket very soon. This is not withstanding that the resource boom may continue further for a little while longer in the near future

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

7. Thank you.

regards,
Kenneth KOH
 
How about the alarming front page headline in Monday's West Australian ??
"Mining Giants Forcast Slump"
"Major mining companies have warned the world's powerful bankers and finance ministers that the price of key minerals such as gold and iro ore are set to fall, potentially bringing WA's commodity boom to an end as early as next year." etc etc.

Wonder when building costs will start to stabilise so this market can flatten out....

kp
 
Hi all

Interesting thread.

Here is some exact figures on my local area in Perth which I know well:

Ok we purchased 3 x 1 house 730sq block in Bullcreek (10-15k from city - well established 30yr old suburb - pretty much your average perth suburb) in april 2004 for 210k (pretty much block value) - bulldozed built lovely new PPOR, thru builder 178K as displayed.

OK now we are at june 2006 - identical house / block, 4 houses away sold for 460k - the price for the same house as displayed now 260k

That's 250k increase on block in 2 yrs / 90k on the price to build.

Our old house in Willetton - 2 suburbs away, same type of suburb.
I had it valued in 2004 at 225 - 245k sold july 2005 320k

2 houses up the street in willetton comparable house to ours sold in dec 05 for 380k the new owners put it back on the market 6 months later and sold for 430k.

around the corner in bullcreek - 2 house bulldozed - subdivided into 3 blocks of approx. 500sqm each - auctioned mid 2005 sold for average of 325k each.

Our Bullcreek PPOR now valued at a conservative 700k

I have a girl friend who buys land builds, lives in them and then sells and does it all again she is on to no.6. She made 200k on the last one - the buyers have just had finance approval last week - she's already purchased a new block and is waiting on title.

So I would believe the stats for block increases. I haven't seen a block advertised for under 250k in Perth for quite a while now.

Mind I have not seen the actual sales figures on the new suburb releases, only what I have heard from those that have purchased there, none have purchased for under 250k.

Also you can get sale figures from www.dli.wa.gov.au - for a price (department of land information) used to be DOLA.

Happy pondering Perth.

Celeste
 
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