Perth - Start of New Boom 2011 ?
- Thread starter Alex P Keaton
- Start date
^
WARNING - it was written in the worlds worst newspaper
Metalurgists we may have, Journalists we dont
Cough, cough Sam.
Gently with the generalisations.
oh god not the football stadium debate again ....
seriously - there are bigger fish to fry....like health, education, aboriginal affairs, public transport and getting good service with your diluted cinderblock of a coffee....
seriously - there are bigger fish to fry....like health, education, aboriginal affairs, public transport and getting good service with your diluted cinderblock of a coffee....
and the foreshore
Oh come on guys, it's not so bad.
Vive la difference ...
Vive la difference ...
In some ways Sam I agree with you .... but I'm much more interested in it waking up economically!
dunno about you, but i like my family available on Sundays for barbeques
Hmm - Plug but a useful one
Alright, full disclosure - I work for Your Investment Property mag
Here's our answer to your question, sourced from
http://www.yipmag.com.au/market-report/wa/
here's the article for you guys and gals - per May 09 (you'll need to grab a copy if you want the most current)
Market Report Western Australia (May 2009)
1/09/2009
There are bargains to be found in Perth, but you'll have to be patient - growth over the next 12 months will be minimal.
The corrective year for the Perth property market was 2008, admits Rob Druitt, president of the Real Estate Institute of WA. "We had four quarters of reducing prices," he says. The early months of 2009, however, saw the housing market slowly but surely sputtering to life.
Residex figures show that house price growth for the three months to May was 2.22%. The median home value in Perth is $482,000. This puts it in third place in terms of price, behind Sydney and Melbourne. Rental yields, however, are still the lowest in the country at 3.90%.
It is clear that Perth has been battling an oversupply problem, but the worst is probably over. "We were wildly overstocked in 2008 with over 18,000 properties on the market, bearing in mind that we have a long-term average of about 12,000 in Perth," says Druitt. "Our latest figures show around 14,000 properties on the market. A lot of that stock was taken up because of the mini-boom with the first homebuyers. Under $500,000 is fairly buoyant, turning over - not going anywhere in price, but good turnover."
There is no such buoyancy for other market sectors, though. "We've still got a fairly sluggish middle and top end of the market," says Druitt, "although those sellers that have been prepared to meet the market - ie come down in price - are finding that the properties are selling, but only to buyers who are looking for real value."
Druitt warns investors not to get too excited about the Perth rebound. There is good buying all over the city, but patience and a long-term view will be required. "Indications are that the bottom of our market price-wise was the December quarter 2008," he says. "It doesn't mean that we're going to be powering into the next cycle yet. We're probably going to have a fairly flat market for 12-18 months."
This will not phase experienced investors, though, as they tend to reject the get-rich-quick attitude that prevailed in Perth in 2006-7. Careful examination of opportunities and strategic investment will certainly bear fruit over the next 5-10 years.
The Perth unit market carries a higher level of risk. "That is an area that you'd want to watch because there is a lot of supply coming through," says Druitt. "One of the difficulties in Perth is that we tend to have most of our apartments $5-600,000 and up. There's not a lot of cheaper, smaller apartments and they're the ones to target because they're the ones that are going to see the growth."
Alright, full disclosure - I work for Your Investment Property mag
Here's our answer to your question, sourced from
http://www.yipmag.com.au/market-report/wa/
here's the article for you guys and gals - per May 09 (you'll need to grab a copy if you want the most current)
Market Report Western Australia (May 2009)
1/09/2009
There are bargains to be found in Perth, but you'll have to be patient - growth over the next 12 months will be minimal.
The corrective year for the Perth property market was 2008, admits Rob Druitt, president of the Real Estate Institute of WA. "We had four quarters of reducing prices," he says. The early months of 2009, however, saw the housing market slowly but surely sputtering to life.
Residex figures show that house price growth for the three months to May was 2.22%. The median home value in Perth is $482,000. This puts it in third place in terms of price, behind Sydney and Melbourne. Rental yields, however, are still the lowest in the country at 3.90%.
It is clear that Perth has been battling an oversupply problem, but the worst is probably over. "We were wildly overstocked in 2008 with over 18,000 properties on the market, bearing in mind that we have a long-term average of about 12,000 in Perth," says Druitt. "Our latest figures show around 14,000 properties on the market. A lot of that stock was taken up because of the mini-boom with the first homebuyers. Under $500,000 is fairly buoyant, turning over - not going anywhere in price, but good turnover."
There is no such buoyancy for other market sectors, though. "We've still got a fairly sluggish middle and top end of the market," says Druitt, "although those sellers that have been prepared to meet the market - ie come down in price - are finding that the properties are selling, but only to buyers who are looking for real value."
Druitt warns investors not to get too excited about the Perth rebound. There is good buying all over the city, but patience and a long-term view will be required. "Indications are that the bottom of our market price-wise was the December quarter 2008," he says. "It doesn't mean that we're going to be powering into the next cycle yet. We're probably going to have a fairly flat market for 12-18 months."
This will not phase experienced investors, though, as they tend to reject the get-rich-quick attitude that prevailed in Perth in 2006-7. Careful examination of opportunities and strategic investment will certainly bear fruit over the next 5-10 years.
The Perth unit market carries a higher level of risk. "That is an area that you'd want to watch because there is a lot of supply coming through," says Druitt. "One of the difficulties in Perth is that we tend to have most of our apartments $5-600,000 and up. There's not a lot of cheaper, smaller apartments and they're the ones to target because they're the ones that are going to see the growth."
and be nice to be able to go to the shop to buy the snags beforehand, then have the daylight to see what we were cooking too
DST is great for older families.
i think a lot of people forget just how hard it is to put small children to bed, in full daylight, at 7pm, when it's still 32 degrees outside.
whatever happened to planning a weekend? and you can still buy snags on a Sunday - at IGA. why do ALL shops need to be open?
i reckon Perth gets enough light in summer. however - i'd be ALL FOR a DST in WINTER. nothing worse than getting up when it's dark, getting to work as the sun comes up, then getting home when it's dark. at least DST in WINTER would give you daylight at one end of the day.
i think a lot of people forget just how hard it is to put small children to bed, in full daylight, at 7pm, when it's still 32 degrees outside.
whatever happened to planning a weekend? and you can still buy snags on a Sunday - at IGA. why do ALL shops need to be open?
i reckon Perth gets enough light in summer. however - i'd be ALL FOR a DST in WINTER. nothing worse than getting up when it's dark, getting to work as the sun comes up, then getting home when it's dark. at least DST in WINTER would give you daylight at one end of the day.
How about Troy Buswell's "emergency meeting" to try to prevent another property boom in WA? So many things wrong with that idea, firstly, the only way to prevent it, is to prevent overseas and interstate workers moving here for work. Secondly, by announcing this on the front page of the paper, is gonna contribute to it being a self-fulfulling prophecy. First homebuyers and investors are going to go nuts trying to get in before this unpreventable boom we are about to have.
the problem here is that the world has moved on - Rob Druitt is no longer the REIWA president and the upper pricing levels of housing have spiked significantly. The realisation that the resource states will be the engine room of the economy for the next 20-30 years is dawning on people. The general change in mood is notiuceable and barely a day goes by without a 'housing to boom' article. Here was todays effort:
Fears of new land price boom
http://au.news.yahoo.com/thewest/a/-/wa/6391069/fears-of-new-land-price-boom/
i guess the warnings are out there now.
even govt have recognised the fact that the sh*ts about to hit the fan.
even govt have recognised the fact that the sh*ts about to hit the fan.
Would love to purchase my 2nd IP in the next month or 2 but in reality I think I will have to wait 6 months +
I have no other debt besides my $305,000 mortgage. Rental income is $400 a week. I live rent free and have around $60,000 available equity. I earn $55,000pa
Any ideas to get in sooner rather then later?
I have no other debt besides my $305,000 mortgage. Rental income is $400 a week. I live rent free and have around $60,000 available equity. I earn $55,000pa
Any ideas to get in sooner rather then later?
buy smaller? i do a number of 300-400k valued properties every month in the northern corridor.
i have 16 ready to be sold next week, and another 6 or so as a re-list from bad finance.
i have 16 ready to be sold next week, and another 6 or so as a re-list from bad finance.
Do you think I could buy in the $250 - $300k price range?
Considering Adelaide but would prefer to get into the $400 - $450k price range in Perth
