Perth Property Market updates

Looks like a lot of people got Sydney wrong in 2011. Massive spike in expectations that prices will fall, just before they boomed. Oops!

Going by past performance therefore, Perth will boom over the next few years! :rolleyes:
 
Looks like a lot of people got Sydney wrong in 2011. Massive spike in expectations that prices will fall, just before they boomed. Oops!

Going by past performance therefore, Perth will boom over the next few years! :rolleyes:
Yes keep the Perh bubble hopes alive and frothing! It's just like Sydney - full of promise! :rolleyes:

(I make no interpretation of the graphs provided. It's for information purposes only.)
 
Yes keep the Perh bubble hopes alive and frothing! It's just like Sydney - full of promise! :rolleyes:

(I make no interpretation of the graphs provided. It's for information purposes only.)
You really think there's a bubble in perth property? It can be argued it is slightly overpriced but a bubble? You do know that relative to income perth is the most affordable it has been in a while don't you?
 
You really think there's a bubble in perth property? It can be argued it is slightly overpriced but a bubble? You do know that relative to income perth is the most affordable it has been in a while don't you?
Read between the lines. The emoticon :rolleyes: was used, accompanied by a disclaimer in parentheses.

I have no opinion of the Perth market, only been there once, a few years ago. At that time, I felt like in a ghost town. That's all I can say.
 
Spot on....Perth was fortunate to have self cooled. This time around prices have come off but not substantial decline....and still affrodable vs relative wages. Some markets like apartments are another story...it won't be pretty.

The real bubble is Melbourne apartments, Melbourne inner/middle houses, and just about every suburb in Sydney.

You really think there's a bubble in perth property? It can be argued it is slightly overpriced but a bubble? You do know that relative to income perth is the most affordable it has been in a while don't you?
 
I actually think there are some opportunities in the perth apartment market, taking advantage of dips. I'd be looking at some of the recent low rise developments, preferably less than 10 in a block, low strata fees, near amenities and/or transport

I'm generally not a big fan of river vale despite its providing to everything but I believe some new 2 bedders dipped below 400k (someone correct me if I'm wrong) and that's good buying

I've just finished building 4 in the suburb of perth on highgate border and despite market glut I've had a fair few unsolicited offers and lots of interest. There is still demand for quality in perth.
 
Sanj

Do you think its your product that stands out, price point, location, therefore getting the interest??

I ask because I noticed the market in Spearwood (villas) dropped off some six months into my build and did not really think they would sell or I would have to drop my price significantly, it surprised me when they all sold in 4 weeks for higher than expected.

I also think there are some markets in Perth that are doing OK, its a mixed bag really.

MTR:)
 
sanj demands a top-notch spec and decent architectural outcomes (not just a nice facade).

i daresay this point of difference is well noticed and valued within a marketplace full of same-same.
 
  • Like
Reactions: oc1
II'm generally not a big fan of river vale despite its providing to everything but I believe some new 2 bedders dipped below 400k (someone correct me if I'm wrong) and that's good buying
Don't panic... you are spot on... :D

$390k for for a 2x1 http://www.realestate.com.au/property-unitblock-wa-rivervale-117696511

2 bedroom x 1 bathroom apartment From $395k http://www.realestate.com.au/property-apartment-wa-rivervale-119234219

I don't much like Rivervale either, but it has it's location going for it... the Roberts Road one is walking distance to Crown, Lathlain oval and even Vic Park train station. Well, I would walk to the station anyway.
 
Rivervale has had a huge chunk of apartments go up. I think prices are set to fall with the massive supply. It's hugely convenient, yes, but a lot has gone up in the last year. I don't have much knowledge in real estate, but who generally buys these small OTP apartments? Investors or owner occupiers?

In (top end) Rivervale you can buy a liveable 3bd house on a 700sqm block for approx $550k. Surely that is better value? Or am I talking about two completely different sets of buyers?

This is a decent block (in Bassendean), shame about the price (which ruins it):

http://www.realestate.com.au/property-house-wa-bassendean-119985581

Don't panic... you are spot on... :D

$390k for for a 2x1 http://www.realestate.com.au/property-unitblock-wa-rivervale-117696511

2 bedroom x 1 bathroom apartment From $395k http://www.realestate.com.au/property-apartment-wa-rivervale-119234219

I don't much like Rivervale either, but it has it's location going for it... the Roberts Road one is walking distance to Crown, Lathlain oval and even Vic Park train station. Well, I would walk to the station anyway.
Sanj

Do you think its your product that stands out, price point, location, therefore getting the interest??

I ask because I noticed the market in Spearwood (villas) dropped off some six months into my build and did not really think they would sell or I would have to drop my price significantly, it surprised me when they all sold in 4 weeks for higher than expected.

I also think there are some markets in Perth that are doing OK, its a mixed bag really.

MTR:)
From what the photos displayed, your build was good spec. I'm sure that came into play.
 
Rivervale has had a huge chunk of apartments go up. I think prices are set to fall with the massive supply. It's hugely convenient, yes, but a lot has gone up in the last year. I don't have much knowledge in real estate, but who generally buys these small OTP apartments? Investors or owner occupiers?
As far as I know, it is a mix. I know one developer who keeps a couple of apartments in each development to rent out. I also know a couple of owner occupiers in the area who love their apartments.

In (top end) Rivervale you can buy a liveable 3bd house on a 700sqm block for approx $550k. Surely that is better value? Or am I talking about two completely different sets of buyers?
As far as I know, different buyers. There are some people who just do not want any yard at all to look after and who like the security of apartment buildings. Of course the $150k price difference is attractive too. ;)
 
Funding Going Into Perth

Here's what I recently sent out for my company newsletter.
It's a more medium-long term look at the private investing and infrastructure being placed in Perth at the moment.

If anything, it understates the significance of the 5 billion dollars worth of infrastructure being put in and around the Gateway project and doesn't highlight the significance of the new quay, that will create a connection from the river all the way into Northbridge.

Please forgive the loss of formatting from copying and pasting.




Perth is becoming a vibrant and attractive city to rival any modern city in the world. A bold statement, perhaps, while the media focuses on the end of the mining boom and the doldrums of the property market, but people continue to be drawn to this dynamic metropolis. What?s drawing people here, and why? And what does it mean for Perth?s property market in the next 10 years?

The media focus recently has been all about the end of the mining boom and the falling iron ore price. What this hasn?t reflected is the shift that has taken place from investment driven growth to export-led growth, a change that has always been forecast to lead to a drop in employment, but is also a system under which the big mining companies that continue to operate will provide steady employment openings in the long-term.

So it?s not all doom and gloom on the mining front. The production phase in Western Australia?s mining industry should stretch for the next 20+ years. And as the spotlight of super-focused growth shifts, new doors have opened for investors and the State Government to invest in other neglected industries in Perth, such as tourism.

Tourism has long played second fiddle to mining as a source of revenue in Western Australia. Hotel beds have been kept for FIFO workers, and investors have spent their money on the resources sector rather than recreation. To some, Perth has not had a reputation as a great place to visit. But this is changing.

More than $3billion is being spent on providing 4,000 new hotel rooms in Perth, including the Ritz-Carlton at Elizabeth Quay and a 5-star Westin Hotel at the old Perth Fire Station site. The big hoteliers behind this level of investment have done their homework, and will only invest in regions where they expect serious demand. They want those rooms filled, and they are looking in the right place. Tourism WA reports visitor numbers to Western Australia have been increasing without any signs of slowing, and that most of these visitors spend their time in Perth.

Tourists aren?t the only people coming to Perth. While the rate of migration to Western Australia has slowed, the state still shows the fastest rate of population growth in Australia. Perth already boasts the drawcard of being a relaxed and sunny place to live. And with a large number of infrastructure projects due for completion over the next five years, creating jobs and huge levels of both private and Government funded investment, Perth is being transformed.
We have:
? Fiona Stanley Hospital, the biggest Hospital in the Southern Hemisphere, now operational
? Perth Children?s Hospital, due for completion in 2015 and expected to create 8,000 new jobs
? Elizabeth Quay, the new waterfront project which is expected to attract more than $2billion in private investment and more than 4 million visitors per year, as well as being the workplace for more than 10,000 people
? Perth City Link, reconnecting Perth CBD and Northbridge, providing 3,100 new jobs and incorporating two major hotels
? Perth Stadium, creating 5,700 new jobs
? The new Museum of Western Australia, with $423million in investment making the redevelopment one of the most significant in the world
? Perth Airport Redevelopment, with $750million being spent in expectation of passenger numbers doubling
? The Forrestfield-Airport Link, opening up new access between the city and the airport
? MAX Light Rail, with the first services expected to run in 2022; and
? Gateway WA, creating 165km of new roads and 7,000 new jobs

This massive infrastructure spend is drawing people to Perth and growing the economy in new ways no longer tied to mining. Instead of a brain drain, Perth is undergoing a brain gain.

So where does that leave the property market in the next 10 years?
Historically, there has never been a 10 year period in Perth without house price growth. For example, the median house price in 2005 was $300,000 compared to 2015?s median price of $549,000, and the GFC happened in that time period! Even prior to 2005, Perth?s house prices have always shown long term growth.

As for the future, it seems evident that investment, infrastructure and employment will continue to grow. People are continuing to come to Perth, for the jobs and the lifestyle, and those people need somewhere to live. Perth?s housing shortage is set to continue, as development can?t keep up with the increases in demand. The State Governments? Directions 2031 says infill needs to increase as we strain to fit more homes within Perth?s existing footprint, but this is not happening fast enough. The shortage will continue to drive long-term capital growth.

As WA Treasurer Mike Nahan said, Western Australia has ?one of the brightest futures in the developed world?. Perth is being upgraded, the quality of life lifted to become a vibrant, dynamic place to rival any other modern city in the world, and investors can have confidence in the Perth property market.

There are only four steps you need to take to make the most of Perth?s property market. Plan your strategy, seek expert help and focus on the growth drivers and what is important to tenants to find the right investment property. And lastly, and most importantly, start now.
 
When in Perth, look for coffee. It indicates how's "vibrant" it is. Good luck finding an open cafe on a public holiday.
Obviously you have not been to Perth in the last 2 years. Things have changed dramatically. You have a large choice of places to get a coffee and eat on a public holiday. There is a vibe in the city that was not there previously. Actually reminds me a bit of Sydney, just more relaxed and laid back, and of course sunnier. You should visit us again soon.
 
When in Perth, look for coffee. It indicates how's "vibrant" it is. Good luck finding an open cafe on a public holiday.
bzzzzzt incorrect.

you arent going to win any arguments about hospitality industry with me, it's one i know intimately.

we currently have a pretty outstanding food and drink scene, im currently trying to poach a couple of really great bartenders from melbourne who are keen to come and work here because they've heard of the opportunities.
 
Top