Perth property listings - under 12,000.

[Aaron Sice]

Guys, I don't want to sound like a wet blanket but I know too many people in this town who have just lost their jobs.

This may give you some insight. De-manning going on all over town right now in iron ore...

With iron ore prices where they are now, a lot of projects are moving to the right. If they keep following the trajectory they are now on, it won't just be development projects getting canned.

but then Esperance looks set to expand .....

 

[Dazz]

Guys, I don't want to sound like a wet blanket

....mate, you sound like a wet blanket....

It was highlighted in the presentation this morning and forum session afterwards to be very wary of eastern states journalists writing doom and gloom pieces about the WA economy.

In their opinion, they simply don't understand the way Perth and the mining / oil and gas sectors work.

It's interesting that in the space of a few hours two articles are linked, both eastern states papers, both with not much in them.

Rio is going to close a small office in Sydney with no less than 30 support staff....and this proves what about Perth ??

I gather the strategic high level guys aren't sharing the real situations that are being negotiated w.r.t. property demand in Perth.

 

[HiEquity]

bhp were stuffing my mate around, couldn't decide whether to renew or not etc, so he and pretty much the rest of his team went over to inpex, better money and conditions. This pussy footing around by bhp is not good managemnt IMO, i dont know if they are a little lost, having a crack at julia or trying to manipulate the commodities market but it is appearing as incompetence and indecision. meanwhile rio is powering ahead.

Rio has cheap expansion options with two ports and a bigger footprint. They also have more exposure to iron ore and are more committed to it as a result. They can also make up for lost margin with greater production.

BHP can't expand significantly without spending $20bn on outer harbour. That's just too big a mountain to climb with current prices, so all bets are off...

 

[HiEquity]

....mate, you sound like a wet blanket....

Thought so!

I'm too personally caught up in this right now. Hard for me to see the bigger picture and all that while this is going on.

 

[Dazz]

Fair enough chief....but if jobs are tough right now, don't get caught on company time posting on Somersoft forums !!!

 

[hobo-jo]

First home buyers on the increase in WA. 13.3% 12 months ago to 22.7% today:

http://www.afgonline.com.au/news.html?id=01_002581

 

[HiEquity]

Fair enough chief....but if jobs are tough right now, don't get caught on company time posting on Somersoft forums !!!

You're right - I should be on seek like everyone else!

 

[Aaron Sice]

You're right - I should be on seek like everyone else!

are you saying you've been made redundant?

 

[redwing]

You're right - I should be on seek like everyone else!

I heard Calibre's offices were busy today

 

[Jake D]

I heard Calibre's offices were busy today

Where do I send my resume? I don't think it's any secret that I am not busy.

 

[redwing]

From the Property Observer on 31st July

Property investor activity on the rise in mining states WA and Queensland: Knight Frank

He says WA now has one of the strongest rental markets, “with huge numbers of people flocking to the area for work”.

“Inner-city rents have jumped about 30%. For example a two-bedroom unit fully furnished was $600 per week 12 months ago. Over the last two weeks, we have been renting the same unit for $850 per week.”

“Supply of property for sale is dropping as owners decide to rent out their property instead of selling."

The strong performance of Perth’s rental market in particular – and Brisbane’s to a lesser extent – was revealed in the March quarter figures put out by the Real Estate Institute of Australia (REIA).

Perth rents for three-bedroom houses have risen 9% over the previous 12 months to a median of $425 while two-bedroom units are up 8.1% over this period to $400, according to the REIA.

Brisbane three-bedroom house rents are up 2.9% to a median of $360 for the 12 months to March while two-bedroom units are up 4.3% to $365.

 

[redwing]

Crown Towers Hotel

Crown Limited has shown its long-term commitment to Perth with its decision to undertake the development of a new six star, luxury hotel to be known as Crown Towers Perth (pictured above).

The total investment in the Crown Towers project (inclusive of land) is expected to be $568 million. The 500-room new luxury hotel will add to the suite of hotel accommodation at Burswood Entertainment Complex and will be a big boost to the local economy.

The development of the new hotel will take Crown Limited’s investment in the Burswood complex, to over $1.3 billion dollars since acquisition in 2004. In addition to the total cost of acquiring Burswood of almost $900 million, Crown’s total investment in Perth will now exceed $2.2 billion.

Upon completion, Crown Towers Perth will be the largest hotel in Perth and will take hotel room capacity at Burswood to nearly 1,200 rooms. Construction is expected to commence in early 2013 and the hotel, which will take approximately 3 years to complete, will comprise 500 rooms and include restaurants, bars, resort and convention facilities.

The new hotel comes at a time when Perth and Western Australia are in desperate need of additional luxury hotel and short term accommodation to satisfy the demands of business travellers and tourists and will put Perth firmly back on the map for leisure travellers seeking exclusive, resort-style experiences.
cont...

Source

 

[Steve Fitz]

Great conversational thread guys!

I have a question to the guys involved in finance - At what level is the current 'ceiling' of lending?

In my own experience during the boom, our property prices hit the affordability ceiling which basically capped pricing for median range stock. With the recent falls in interest rates but also taking into account the current banking requirements on deposits etc... what would the average borrower be able to afford and, based on that number, what can the median housing price climb to again?

Then it'd be good to see what the current median is vs the 'ceiling' median.

Anyone able to shed some light on that for me would be appreciated.

 

[HotRod]

Down, down

Down again this week to 10897!

 

[hematite]

it also comes down to whether it is for weekday or weekends

our hotels are relatively empty on weekends, there are a number of cases where a room rate drops for over $400 to around $150 from thursday to friday, the mercure is one of them

the criterion is absolutely terrible unless they have recently upgraded. in future id recommend going the stayz option for a cheapie if i were you, many apartment owners are taking advantage of hotel shortage and offering up their places on a short term basis

a friends business often has people staying in perth for a few nights on their way to/from site and he pretty much only uses apartments midweek and hotels weekends now as it is often too expensive midweek (as well as too hard to get a room)

Agreed, Criterion is a dump. Hotel operators are raking it in at the moment.

Lots of new people still coming to Perth, most of my old team were 457ers paying pretty high rental yields.

 

[feihong]

Drum rolls...

Pet Shop Boys would have been proud..

 

[Aaron Sice]

looks reasonably balanced at this level - should start to chew through stock.

amazing that when i was ridiculed for saying that sentiment rules, not economic data - i was chided for it quite hard.

yet here we have seriously positive data reflecting a coming shortage of stock from traditional levels, yet no price movement.

hmm....i wonder why.

 

[HotRod]

looks reasonably balanced at this level - should start to chew through stock.

amazing that when i was ridiculed for saying that sentiment rules, not economic data - i was chided for it quite hard.

yet here we have seriously positive data reflecting a coming shortage of stock from traditional levels, yet no price movement.

hmm....i wonder why.

A balanced market is about 12500 nowadays, so we passed that a while ago. Stock down another 110 or so this week, so very much shaping up to be a seller's market soon.

The media hasn't quite cottoned on yet and purchasers are probably still sitting on the sidelines waiting to be told by the media that the market is taking off and they should get in. Love the herd mentality.

Unfortunately (for them) it will be about 3 months too late as the REIWA data looks back, but the stock on the market/stock selling is the leading indicator.

 

[Ausprop]

I think a balanced market is more like 14-15,000... but that's just another opinion!

I think prices for the right thing are improving. just as a lot of people refused to accept that prices for some properties dropped 50% during the dark days of the GFC, the reverse is now true. When the fluctuatiosn become the norm and it is totted up and stewed over for a few months and then there is a bleeding heart sotry in the west about the boom that is leaving first home buyers behind, then we will have conformation that the cycle did bottom out

 

[HotRod]

I think a balanced market is more like 14-15,000... but that's just another opinion!

I think prices for the right thing are improving. just as a lot of people refused to accept that prices for some properties dropped 50% during the dark days of the GFC, the reverse is now true. When the fluctuatiosn become the norm and it is totted up and stewed over for a few months and then there is a bleeding heart sotry in the west about the boom that is leaving first home buyers behind, then we will have conformation that the cycle did bottom out

Only reason I stated 12,500 is that is the number I have heard from REIWA a number of times on the RE program on 6PR on Sat mornings. Don't how they figure that.