Perth Property Market updates

http://sourceable.net/perth-prestige-property-discounts-ahead/

The institute says prestige property prices in the exclusive river and beachside suburbs of Perth appear to have stabilised since steep falls in 2011/12, but the high-end $3 million plus market remains subdued.
REIWA president David Airey said more than half of vendors in the mining hub of Perth were dropping their prices, with discounting tending to occur on properties listed above $1.5 million.

huh, is my memory fading? the worst of the falls were done and dusted by 2011,the steep falls were in 2009/10 with up to 40% off, then it has come back since mid 11 by around 10-20%. Vendors rarely put ther price up so news there. I think people know where Perth is without having to describe it is a mining hub "oh that place out west where they dig iron ore, I remember. Don't they do a bit of gas now and then as well?". And the $1.5m market is going gang busters atm... .what are they all on?
 
Thanks guys. Sanj has a good point referring to old homes with large land component. There is the problem of distance , lack of infrastructure and a huge supply of land around that area
 
lol 2050...

It's fully funded and going to tender shortly.

But sadly, the glory days of infrastructure investment in perth and private investment in the northwest are at an end. This job is a decent job, but it's a drop in the ocean compared to the past decade, and I'm not just talking about mining investment either there was a lot of money pouring into perth for a long time with the Kwinana fwy, roe hwy and Mandurah rail link. Once gateway wa is finished it's going to be quiet for a while. The Feds are spending all of their money in NSW and to a lesser extent Victoria and Queensland - the State government in wa doesn't have the cash to bank roll big infrastructure investment on its own at the moment, although there are rumours that the airport tunnel PPP might go to market next year .
 
But sadly, the glory days of infrastructure investment in perth and private investment in the northwest are at an end.

Then you add the 2nd stage contraction in resources as the price of Fe drops below $50. The big guys will probably buy up many of the juniors over time as they collapse. That will further reduce the workforce and supporting suppliers of services etc.

I've said for the last 3-5 years that as this boom unwinds WA is in for far more pain than most would realise.

The problem with booms is that capacity ultimately meets demand but then is overbuilt beyond the peak. Demand may actually fall back below pre-boom levels which leaves substantial over capacity in the system. It may take decades for that capacity to come back on line if ever.

WA Govt is flat out selling the silver, pushing back infrastructure projects (they'll never be built) and upping revenue (raising taxes) where ever it can. That desperation will continue for a few more years yet. Its current interest bill alone could build a stadium every year. As its position continues to slide and its credit rating become more precarious any interest rate increases would /could be very painful.

WA's halcyon days are coming to end. I have a few friends there who have bought in the last year or two (not PI's). I think they may have done their doe.
 
Gateway WA web-site expected to be completed mid 2016

Gateway WA Perth Airport and Freight Access Project

The $1 billion dollar Gateway WA Perth Airport and Freight Access Project is the largest infrastructure project ever undertaken by Main Roads WA. Jointly funded by the State and Federal governments, the project is preparing the city for future growth.

The project incorporates road and bridge improvements, local road modifications, facilities and connections for pedestrians and cyclists, noise walls, landscaping, innovative urban design and the use of intelligent transport system technology.

It involves much-needed improvements around Perth Airport as well as the nearby Kewdale and Forrestfield industrial estates, including extra lanes on Tonkin Highway, new interchanges and the upgrade of Leach Highway to an expressway.
 
now that Fe is set to drop below $10 everyone can buzz off to where they came from, the dollar can collapse to 30c against the pound and the UK will be worth working in again. Australia will once again become a place to pick up a nice holiday home and a retreat from the northern hemisphere winters. Financial engineering holds the future, wheelers and dealers in Sydney creating financing packages no one understands... no need for physically producing anything anymore. It's a new golden era
 
As a first home buyer potentially i am looking towards these areas. However i wouldnt want to live that far away from everything.

So it would need to be rented out. To who i say? Well i guess thats already been partially answered with retirees looking to finish up close to the beach. Maybe FIFO however its a long way from the airport.

TBH quinns is the area to look if you want beach side.
 
A bit of an unofficial market report, my south west contact rang me tonight quite enlivened... after a long period of quiet he just wrote about $14m of business over 8 contracts in the space of days, mostly cash offers. I'm quite surprised by the timing of this break out. would like to be on the receiving end of that commission payout just before xmas!
 
A bit of an unofficial market report, my south west contact rang me tonight quite enlivened... after a long period of quiet he just wrote about $14m of business over 8 contracts in the space of days, mostly cash offers. I'm quite surprised by the timing of this break out. would like to be on the receiving end of that commission payout just before xmas!

Roughly 2m per property. Are these large farming lots or retail/commercial? What do you think is happening down there?

On a side note:
http://www.brokernews.com.au/news/b...licensed-financial-product-advice-193836.aspx
Property investment promoter, Park Trent Properties Group has been taken to court by ASIC for unlawfully promoting the use of SMSFs to purchase investment property.
 
Too far realistically for anyone wanting/needing to work in the CBD though that doesn't want to catch public transport.

Thats what i thought also but from speaking to a few people an hour drive to work is nothing compared to what they are used to (2+hrs) when they used to live in other countries. Does anyone else agree ?

Are first home buyers in Sydney now buying 2hrs out of the CBD?
 
A bit of an unofficial market report, my south west contact rang me tonight quite enlivened... after a long period of quiet he just wrote about $14m of business over 8 contracts in the space of days, mostly cash offers. I'm quite surprised by the timing of this break out. would like to be on the receiving end of that commission payout just before xmas!

Australind, Bridgetown, Busselton, Mandurah, Margaret River...Eagle Bay :confused: :D
 
mostly concentrated in Old Dunsborough - single residential holiday homes

eagle bay is a screaming bargain - anyone that ever wanted to own there should buy and buy now
 
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