Perth property listings - under 9,000

[Rixter]

Really keen on perth...is it a buyers market yet?

No from a buyers v sellers numbers........ but doesnt mean you cant find a good property that suits your investment strategy.

It really depends on the supply & demand equation for the type property your chosen investment strategy dictates you're looking to purchase.

 

[z611143]

Some could say it is. Plenty of properties now on the market, however that number will probably only increase for the short to medium term.

The good thing about this whole 'Rates will get less' is it actually turns competition away for the time being and you can actually low ball on a property and if you find the right seller (distresses or really needs to sell) then you can get yourself a bargain due to the above.

The market for me is at a good point for a buyer. Pretty strong supply and little demand and when those two characteristics interchange then thats a pretty good time to buy.

I can tell you if rates do drop 0.5% (For the banks, which is max you would think for profits) then you will have a tonne more competition driving the price up and being around feb/march sellers wont be in a hurry to sell before christmas as much.

 

[Jamie_]

Been quiet in here lately:

Total: 12,809
4 weeks ago: 13,264
Same week last year: 9,273

Slight reduction

Plenty of properties now on the market, however that number will probably only increase for the short to medium term.

 

[unloadmymind]

REIWA is urging tenants to ask their landlords for lower rents:
http://www.perthnow.com.au/news/wes...167341337?nk=ae8fd603d6be1bd81fd6097d72e81b7a

And it's gonna get worse with thousands of apartments nearing completion:
http://www.watoday.com.au/wa-news/a...od-perth-property-market-20140814-103x4h.html

 

[Ausprop]

that second article is quite old but it would be nice to pick up some cheap apartments

 

[Ausprop]

Been quiet in here lately:

Total: 12,809
4 weeks ago: 13,264
Same week last year: 9,273

Slight reduction

supply levels remain stubbornly low. perhaps some apartment completions may help but it won't do anything to assist people looking for traditional style housing.

 

[unloadmymind]

that second article is quite old but it would be nice to pick up some cheap apartments

I wouldn't risk it lol. Who's gonna live in it?

 

[unloadmymind]

The mining boom is entering another phase.

First was the mining exploration and investment cycle. Companies hire many people.

Now that iron ore prices have moved on the downside, mining companies stopped this phase.

They are now shifting to the extraction and export and phase, where much fewer people are needed to run production.

Although RIO and BHP will still earn billions in dollars from production, they will have to cut employment numbers as they are no longer needed.

I hope any Perth property developer/investor would have studied some of these economic concepts first before getting into trouble.

Not only do we have an Iron Ore Glut. We now have a Property Glut.

 

[unloadmymind]

And this article is just clutching of the straws.

http://www.propertyobserver.com.au/...ommodity-driven-perth-market-raine-horne.html

If you're relying on *potential* interest rate cuts, instead of economic fundamentals and demographics, to flog a sick horse is just a sad, delusional mentality of property developers/investors.

The comments in the article are spot on.

WA needs to diversify and stabilise its economy -- urgently.

 

[thatbum]

The mining boom is entering another phase.

First was the mining exploration and investment cycle. Companies hire many people.

Now that iron ore prices have moved on the downside, mining companies stopped this phase.

They are now shifting to the extraction and export and phase, where much fewer people are needed to run production.

Although RIO and BHP will still earn billions in dollars from production, they will have to cut employment numbers as they are no longer needed.

I hope any Perth property developer/investor would have studied some of these economic concepts first before getting into trouble.

Not only do we have an Iron Ore Glut. We now have a Property Glut.

Cool macroeconomic story, but I think the perth property market has a few more variables than just that.

 

[SUNNYBILL]

How is there a property glut?. I think listings are still under what is considered to be a balanced market. Perth market fundamentals have changed from just being a city that services the mining industry. Population is still growing (albeit at a slower more manageable pace), and there is definitely a good buzz about the place. Perth is growing up fast and is a popular option for people moving from overseas or interstate even without a mining boom. It has the relaxed lifestyle people are looking for yet also now offers everything you are looking for in a large city. More sunshine than any other major city in Australia (in fact I think WA should sue Queensland for falsely calling themselves "the sunshine state"). To purely base Perth's property market on how mining is going is no longer relevant as there are a lot more factors that need to be considered both now and moving forward.

 

[Ausprop]

WA needs to diversify and stabilise its economy -- urgently.

it did about 10 years ago

 

[Ausprop]

How is there a property glut?. I think listings are still under what is considered to be a balanced market.

correct and it is amazing that it has taken so long to even come close to a balanced market. More supply is needed but I fear that what is being delivered to the market is not what joe average wants anyway

 

[unloadmymind]

Bury head in sand...there you go.

Count the number of For Rent signs. If they're not listed as For Sale, they are desperately in need of tenants.

"There are now 6,111 rentals on the market - up 37% yoy" -REIWA

It's jus a beginning of the mining investment decline. WA and Perth economies are still hugely underpinned by and dependent on resources.

 

[Ausprop]

um ok... it's actually pretty good out there but if you want to take some pleasure from kicking WA for some reason then who am I to be the grinch...

yes, it's shocking, oh the misery, I wish iron ore prices would go back, oh I wish oil prices would recover. I'm sleeping in the car, I don't know what to do

 

[tropic]

yes, it's shocking, oh the misery, I wish iron ore prices would go back, oh I wish oil prices would recover. I'm sleeping in the car, I don't know what to do

Did you just buy yourself a nice Winnebago?
I assume that is the only time you'll be sleeping in the car.

 

[westminster]

Bury head in sand...there you go.

Count the number of For Rent signs. If they're not listed as For Sale, they are desperately in need of tenants.

"There are now 6,111 rentals on the market - up 37% yoy" -REIWA

It's jus a beginning of the mining investment decline. WA and Perth economies are still hugely underpinned by and dependent on resources.

There is more to WA than Iron Ore.

But yes it is true that a number of large projects that were under construction needed a lot of man power during construction phase and don't need hardly any during production phase.

However those construction jobs were never going to be more than a few years. Any idiot could see that. The Resources industry is not the construction industry and should not be confused between the 2. Just because Chevron/Rio/BHP need things constructed does not make them part of that industry.

By and large the number of geologists/geophysicists/production engineers remains quite stable. Some move from project to project as they ramp up and down but not in the massive scale of sensationalisted journalism '1000 people sacked from Project x'

 

[HiEquity]

By and large the number of geologists/geophysicists/production engineers remains quite stable. Some move from project to project as they ramp up and down but not in the massive scale of sensationalisted journalism '1000 people sacked from Project x'

Production engineers are stable but construction / feasibility engineers and exploration geologists aren't! I certainly know there are thousands of engineers out there who were working in Perth five years ago but aren't anymore.

Having said that, in the project teams I know there was always a very large cohort of experienced engineers who got dragged out of retirement by the excellent salaries on offer at the time. There is a well established network of people who don't "have to work" but will for the right price. The vast majority have happily drifted back off to retirement now.

Of the remainder, there has certainly been quite a few that have either returned to the country they originally came from or who are now working overseas (Saudi Arabia and UAE are common mentions) like Blacky. But it's not a lot. Indeed, in the power industry right now, there is a definite lack of talent among consultants as the older generation have moved on and the younger have chased safer jobs in other industries or overseas. There is certainly enough work left over to keep me busy if I want it.

 

[Swearengen]

There is more to WA than Iron Ore.

But yes it is true that a number of large projects that were under construction needed a lot of man power during construction phase and don't need hardly any during production phase.

However those construction jobs were never going to be more than a few years. Any idiot could see that. The Resources industry is not the construction industry and should not be confused between the 2. Just because Chevron/Rio/BHP need things constructed does not make them part of that industry.

By and large the number of geologists/geophysicists/production engineers remains quite stable. Some move from project to project as they ramp up and down but not in the massive scale of sensationalisted journalism '1000 people sacked from Project x'

The difference is that the projects are far more labour intensive during the CAPEX phase which is what has driven wa's economy for the last several years.

 

[Ausprop]

The difference is that the projects are far more labour intensive during the CAPEX phase which is what has driven wa's economy for the last several years.

not just WA - directly darwin and brisbane as well. The cash flow has funded infrastructure and budgets in the south east. Fortunately Perth is quite a diversified economy and a lot of this surplus demand was filled by external sources, however nationally it isn't looking good. The currency is a bell weather for economic performance and that pretty much sums it up