Perth Property Market updates

Went to an auction in Mount Hawthorn on Saturday.

491sqm block with older federation style 2x1 brick and tile on it

http://www.realestate.com.au/property-house-wa-mount+hawthorn-119699431

Kitchen needed about $5000 other than that a lick of paint. Bathroom was all good.

sold for $705,000 :eek:

I'm balls deep into a development at the moment but I would have bought that in a heartbeat at that price. I had tears rolling down my cheek :). Funny watching the guy who eventually bought the property run around to different groups before auction including the mrs and I saying "thats a knock down job", "who would buy this" etc.

Only 4 groups bid with about 60-80 in the crowd. When it went live at $705,000 not one extra bid came up. I was gobsmacked.

Anyway that is the market, this one a couple of doors up for this price

http://www.realestate.com.au/property-house-wa-mount+hawthorn-119896613


Or this one across the road for this price

http://www.realestate.com.au/property-house-wa-mount+hawthorn-119889409

I think that's a good buy for the area.
I was hoping this auction in North Perth would stay under $1m but it went for $1.085 http://www.realestate.com.au/property-house-wa-north+perth-119692763
 
that Mt Hawthorn one is a pretty awesome location for that money... it's not a whole lot more than median. Character home, big block on the door step of everywhere - sounds ok to me
 
Am fairly local to the Egina St one. To me thats a pretty good buy if its measured as land value, but if the house is structurally sound then its a hell of a buy!!

I notice yet another out of area agent involved. :rolleyes:
 
We have been without a tenant after they defaulted due to job loss for two months in Girrawheen and have dropped the rent by 15 percent.

Things are sounding very sad over in Perth.

I'm finding it hard to find a tenant for my new IP.
Only 8 properties for rent in the suburb on realestate.com.au

Second cheapest house listed and it's been renovated.
 
Am fairly local to the Egina St one. To me thats a pretty good buy if its measured as land value, but if the house is structurally sound then its a hell of a buy!!

I notice yet another out of area agent involved. :rolleyes:

Im curious, how does an out of town agent make a difference in an auction. An auction with 60-80 people will remove all market innefficencies and those people should bid it up to the true market value. A private sale or low turnout for an auction is another matter
 
I'm finding it hard to find a tenant for my new IP.
Only 8 properties for rent in the suburb on realestate.com.au

Second cheapest house listed and it's been renovated.


What is the advert like? What's the agent like and what are they saying. Post a link if you like and you may get some feedback.
 
Im curious, how does an out of town agent make a difference in an auction. An auction with 60-80 people will remove all market innefficencies and those people should bid it up to the true market value. A private sale or low turnout for an auction is another matter

All assumptions, but the vendors may have looked to the agent for an expected sale price and worked back to set their reserve from there, or the agent 'advised' them of the actual reserve figure itself. Either way its in the best interests of the agent to get that reserve as low as possible, get it on the market and sell it. We also don't know the vendors circumstances, but the low reserve suggests maybe a distressed sale?

I agree that the 'market' not pushing it higher once it passed that low reserve is the interesting part. 60-80 people in attendance isnt as relevant, could have been 1000 people there but there were only 4 parties willing and able to buy, not a huge sample of buyers.

Plenty of variables/assumptions in this auction we cant confirm, but I bet many people walking away from it on the day were thinking the same thing as us ie "how the heck did it just sell at that price?"
 
Last edited:
You only need 2 people fighting for a property at auction, if they both want it bad enough.

Also, if you recall the last boom time in Perth, we had Dutch auctions, purely due to demand agent would have perhaps 9 offers on the table and ask all to place best offer and then go back to the buyers for a second go.

Mt Hawthorn one of those areas where there is huge demand am quite surprised it went so low. Have not been looking at this area lately but tells me perhaps this market is going soft?? anyone know??? because these properties are in high demand and generally no/low stock everyone fighting tooth and nail for the period homes and these size lots, in desirable location.

MTR:)
 
Last edited:
What is the advert like? What's the agent like and what are they saying. Post a link if you like and you may get some feedback.

I'm self managing the property. Kind of annoying advertising on gumtree as you get property mangers contacting you. I'm advertising on realestate.com.au and domain.com.au as well.

Strangely enough I got 4 people wanting to see it tomorrow and an application today.

I'm only competing with one other property in the suburb at the same price which said its available for rent from today. Guessing they might have found a tenant and everyone else is looking at mine now.

Each property has perks and negatives so I will see what happens tomorrow.
 
that Mt Hawthorn one is a pretty awesome location for that money... it's not a whole lot more than median. Character home, big block on the door step of everywhere - sounds ok to me

Agreed. I was a little surprised at the price. It's something I'd love to have as a PPOR.

Granted it needs a fair bit of TLC and there looks to be no garage.
 
Granted it needs a fair bit of TLC and there looks to be no garage.

Yes there was a garage at the back with a second shed behind the garage.

Mt Hawthorn one of those areas where there is huge demand am quite surprised it went so low.

So was I :)

We also don't know the vendors circumstances, but the low reserve suggests maybe a distressed sale?

It was a deceased estate. There were 2 25-35 ladies inside the front bedroom watching the auction. I assumed it was their mothers/grandmothers/father/grandfathers etc etc.

Auctions don't work in a flat market at least that is my view, great result for lucky buyers

I agree...

that Mt Hawthorn one is a pretty awesome location for that money... it's not a whole lot more than median.

Location is second to none. walking distance to bakeries, cafes, new parks, public transport, shopping centre I could go on and on.

Neighbours would have been walking away shattered, all relative but it would have stung a bit. People that didn't buy would have been walking away thinking that they could afford to buy in Mount Hawthorn.

I think it was a once off. I just could not believe that one of the other 3 bidders didn't up it to $710,000. If I walked away with that place for between $760,000 - $780,000 I would have been stoked.
 
Yes there was a garage at the back with a second shed behind the garage.



So was I :)



It was a deceased estate. There were 2 25-35 ladies inside the front bedroom watching the auction. I assumed it was their mothers/grandmothers/father/grandfathers etc etc.



I agree...



Location is second to none. walking distance to bakeries, cafes, new parks, public transport, shopping centre I could go on and on.

Neighbours would have been walking away shattered, all relative but it would have stung a bit. People that didn't buy would have been walking away thinking that they could afford to buy in Mount Hawthorn.

I think it was a once off. I just could not believe that one of the other 3 bidders didn't up it to $710,000. If I walked away with that place for between $760,000 - $780,000 I would have been stoked.

Sometimes you get real lucky, just think about those paying for new villa in Yokine perhaps $700k on 250 sqm...? This purchase was a gem and the opportunity to add value, Reno, extend and $$$$ ... Nice
 
Sometimes you get real lucky, just think about those paying for new villa in Yokine perhaps $700k on 250 sqm...? This purchase was a gem and the opportunity to add value, Reno, extend and $$$$ ... Nice

oh yes the long term investment value in each is chalk and cheese!
 
Went to an auction in Mount Hawthorn on Saturday.

491sqm block with older federation style 2x1 brick and tile on it

http://www.realestate.com.au/property-house-wa-mount+hawthorn-119699431

Kitchen needed about $5000 other than that a lick of paint. Bathroom was all good.

sold for $705,000 :eek:
That house was amazing! I am not in a position to buy right now or I would have snapped it up myself. Without doing any research, I reckon it could have been converted to a 4x2 by extending out the back. I have seen that done and it made a really great house. I'm glad I skipped the auction. It would have made my cry. :D
 
That house was amazing! I am not in a position to buy right now or I would have snapped it up myself. Without doing any research, I reckon it could have been converted to a 4x2 by extending out the back. I have seen that done and it made a really great house. I'm glad I skipped the auction. It would have made my cry. :D


I wouldn't be at all convinced that that house was a great buy.
Look at what similar( better ) type places are renting for in Mount Hawthorn.
The rental market is flat.
There is a lot of money to be spent there in order to even achieve something in the low $500 a week mark.

It's a decent sized block if you want to do a knockdown and build something but where is the fat in that these days?
 
Back
Top