Good product sells well.
Always has, always will.
More to ANY market than meets the statewide stats.
Always has, always will.
More to ANY market than meets the statewide stats.
Perth property listings - under 9,000
- Thread starter Ausprop
- Start date
probably the Willetton high zone, if the houses are Willetton. It's the hot new catchment zone
true, look at the median that was reported whilst house prices collapsed a few years back...it hardly budged
not for buyers, I think a balanced market is about 18000 these days and that may be possible this year.
I don't for a minute doubt any of what you've said, however there is still a lot of overpriced stuff out there and those are the people that will pay dearly in the end. The new theme is "if it's not priced well from the get go, it will be a long hard road to hoe to get rid of it".
It will end up costing them dearly when they do eventually have to take an enforced haircut.
18000 would be terrific for buyers. Not beyond the realms of possibility with the amount of negative news out there currently.
That's a serious buyers market.
I don't think low rise Class 2 is the issue - there really isn't much of that product proportionately.
The numbers are skewed by high rise Class 2 - there is a disproportionate amount going up around the city which is an unintended consequence. Look at South Perth, Highgate, Rivervale, Northbridge, East Perth etc as to what super megalopolis developments are coming.
This will have a very strong flow-on effect throughout all apartment development.
BUT
Judging by what happened with villas in the 90s - if anything - the low rise stuff will gain a market edge as the supply fire hose gets turned on full-tap. People will see the 'value' in smaller, more residential setting apartments over living in a tower with high BC rates.
And considering most of the low rise stuff is happening in suburbia, not in activity centres, I think this is a strong indicator about where the Perth apartment market desirability will be in the next few years to come.
The numbers are skewed by high rise Class 2 - there is a disproportionate amount going up around the city which is an unintended consequence. Look at South Perth, Highgate, Rivervale, Northbridge, East Perth etc as to what super megalopolis developments are coming.
This will have a very strong flow-on effect throughout all apartment development.
BUT
Judging by what happened with villas in the 90s - if anything - the low rise stuff will gain a market edge as the supply fire hose gets turned on full-tap. People will see the 'value' in smaller, more residential setting apartments over living in a tower with high BC rates.
And considering most of the low rise stuff is happening in suburbia, not in activity centres, I think this is a strong indicator about where the Perth apartment market desirability will be in the next few years to come.
I hope so.
I would happily sell a residential house and retire to a high rise apartment in my twilight years with a pocketful of cash.
I would happily sell a residential house and retire to a high rise apartment in my twilight years with a pocketful of cash.
The less land we supplied as part of the product, the more valuable it becomes.
It's all well and good to say Perth has NO shortage of land - which is true - but we do have a shortage of well placed, close to everything land - and THIS is where we are seeing low rise apartment developments (along with heavy resistance to them).
So larger apartments pull on smaller apartments.
But the amenity of the areas that apartments are being built is very mixed use / transit oriented/pedestrian friendly. This will pull on suburbs with the same characteristics, making them more desirable by default.
So the attractions of bigger apartment living will pull on suburbs reflecting the same characteristics, increasing their desirability and therefore, one would expect, "value".
We can't just tar brush any city with bullish or bearish arguments - because it would be very, very easy to invest opposite to this strategy with the same argument.
"Too many apartments, find a suburb with none".
Odds are that a suburb without apartments doesn't have what is desirable for the smaller apartment developments, so it can't capitalise on the flow-on desirability effects.
Pull and push, ebb and flow. Long term investing in Perth requires that kind of thinking.
It's all well and good to say Perth has NO shortage of land - which is true - but we do have a shortage of well placed, close to everything land - and THIS is where we are seeing low rise apartment developments (along with heavy resistance to them).
So larger apartments pull on smaller apartments.
But the amenity of the areas that apartments are being built is very mixed use / transit oriented/pedestrian friendly. This will pull on suburbs with the same characteristics, making them more desirable by default.
So the attractions of bigger apartment living will pull on suburbs reflecting the same characteristics, increasing their desirability and therefore, one would expect, "value".
We can't just tar brush any city with bullish or bearish arguments - because it would be very, very easy to invest opposite to this strategy with the same argument.
"Too many apartments, find a suburb with none".
Odds are that a suburb without apartments doesn't have what is desirable for the smaller apartment developments, so it can't capitalise on the flow-on desirability effects.
Pull and push, ebb and flow. Long term investing in Perth requires that kind of thinking.
When we are talking low rise, are we talking about these 2 by 1 ghetto new builds that go either side of the $400,000 mark in places like Joondanna, Tuart Hill etc?
They are horrible.
Depends on the design, I guess.
Stirling are a "planning by numbers" council - as long as the numbers in the R Codes match the numbers on the proposal, it's a good outcome as far as they're concerned.
Minimal planning efforts yield lowest common denominator results.
Stirling are a "planning by numbers" council - as long as the numbers in the R Codes match the numbers on the proposal, it's a good outcome as far as they're concerned.
Minimal planning efforts yield lowest common denominator results.
You must have an entirely different definition of ghetto to what I do.
Some of them are badly designed though, agree with you there
Aaron,
How would a well-designed townhouse fare if there are low rise apartments being built opposite the road, and possibly next door?
Would the value rise or go south?
What is Class 2 low rise?
well my point in saying it is a balanced market is that at point it's neither a buyers nor sellers market, it is balanced. The market has been such a serious sellers market for so long now without any real world consequence that you have to wonder if it has much impact anyway?
Ausprop
Do you still follow the Mandurah market?
If so how do you see it at present?
The rents have held though and l still get regular 6 month increases. Yields still crap.
I have noticed a lot of props selling the past 6 months but prices haven't moved at all.
My friend purchased an apartment last month 965k the previous owner paid 1.5 mil . ( that's pain )
My last ip purchase is still prolly 20 k under what l paid for it. (2007 -that's stupidity)
Seems to be a lot of building still going on but more so on the outskirts of town.
It's a difficult market to gage for me at the moment so would appreciate any input from anyone.
Cheers
Yadreamin
Do you still follow the Mandurah market?
If so how do you see it at present?
The rents have held though and l still get regular 6 month increases. Yields still crap.
I have noticed a lot of props selling the past 6 months but prices haven't moved at all.
My friend purchased an apartment last month 965k the previous owner paid 1.5 mil . ( that's pain )
My last ip purchase is still prolly 20 k under what l paid for it. (2007 -that's stupidity)
Seems to be a lot of building still going on but more so on the outskirts of town.
It's a difficult market to gage for me at the moment so would appreciate any input from anyone.
Cheers
Yadreamin
Yadreamin,
I'm a Mandurah local too. The real estate agents I'm speaking with are saying the sub $450k market is okay, getting a few people through opens etc ( and that where the investors tend to be too) but the higher end is really slow and big discounts like your friend benefited from. Same as you, I have a friend who got a good discount buying Beach front in Madora Bay. There are great long term buys around in my opinion, but maybe not for quick gains.
I'm a Mandurah local too. The real estate agents I'm speaking with are saying the sub $450k market is okay, getting a few people through opens etc ( and that where the investors tend to be too) but the higher end is really slow and big discounts like your friend benefited from. Same as you, I have a friend who got a good discount buying Beach front in Madora Bay. There are great long term buys around in my opinion, but maybe not for quick gains.
I hope your friend is aware of the Dept Housing in Madora Bay.
