WA - are you ready...?

[mr_taco]

More from the new Real Estate Industry of WA president published today in the Sunday times :

NEW REIWA president Alan Bourke has just taken over the reins of the real estate industry’s peak body. In his first major interview, the Sunday Times asked him what he thought was in store for the WA property market.

What is your outlook for WA’s real estate for the next 12 months?
We are looking at a steady time of consolidation. We will probably go back to long-term averages; a sensible market.

The FHOB dries up at the end of the year. How will this affect the first-home buyers’ market?
First-home buyers normally occupy about 28% of the market in home purchases. It went up to 42% as a result of the FHOG so we will probably go back down to long-term averages of 28%.


How will the Gorgon Project affect the Perth and regional real estate markets? Could it be the key to a major real estate market recovery?
WA tends to look at every positive news story as if it’s all happening now. We’ve got to understand that this project is destined for 2011. As demand increases we have 18 months lead-up time as various suppliers of land and product cater for that demand, so I think we over-estimate and over-compensate the residential importance that this project will have.

Do you think WA’s real estate market could experience another boom?
No I don’t, not in the foreseeable future. I think the market needs to consolidate, needs to take a breather. That’s what we’ll see in the market in the next 12 months. There is nothing really on the horizon to say it will take off.

Do you see a surge of investors returning to the WA real estate market?
I think there will only be a sensible entry into the marketplace with all sorts of motivations. What I don’t want to see is a major increase of speculators in the marketplace and I guess, the upside of slow steady growth is that the speculator won’t be there.

 

[Ausprop]

not sure when Alan made these comments, but the boom is already well under way in the ground zero areas such as Karratha, the follow on areas need abit more time. hopes of avoiding a boom are misplaced energy.

What I don’t want to see is a major increase of speculators in the marketplace and I guess, the upside of slow steady growth is that the speculator won’t be there.

just like Stevens...what you want and what you get are often different things

 

[Aaron Sice]

mr_taco - a quick look and calcualtion of prices on re,com versus REIWA will show that REIWA figures are AT LEAST 6 months out of date.

maybe post up a wiki link next time, just to validate your argument futher...?

 

[redwing]

Perth clearance rates buck national trend

Perth's real estate auction clearance rate has climbed from 36.4% to 50% in the past week, new figures have shown.

Sydney, which showed a moderate increase in clearance rates from 72.6% to 73.1%, was the only other capital to record a growth rate in the week to 18 October.

Perth poised for housing boom

Perth may be about to witness a property boom, thanks in part to the massive cash injection set to be provided by Chevron's $43bn liquefied natural gas project on Gorgon island.

 

[Perth Investor]

I hope you're right Redwing, and I'm backing you. But 4 sales out of 8, with 13 not reported isn't quite the "improvement" I'd like to see...

I don't take Perth's auction results seriously, we don't seem to have the same auction mentality over here (for right or wrong), and the stats are never high enough to ever give a real indication of sentiment in the market...

 

[Aaron Sice]

Perth auction clearance rates?

what's an auction? we don't get them - whatever they are - over here.

 

[redwing]

I've already posted about the upgrade to the Perth Domestic Airport, but to keep this thread plugging along

Perth Airport's long-awaited upgrade seems a step closer to reality after its owner obtained the loans needed to fully finish the project.

Westralia Airports has reached a deal with eight Australian, European and Asian banks for $740 million in debt facilities, while the company's shareholders have committed a further $142 million in funds.

Perth Airport chief executive Brad Geatches said the financing gave the company the certainty it needed to go ahead with the expansion.

Also

Rio Tinto invests US$2.4 billion in two new iron ore mines in the Pilbara
Rio Tinto has announced a further significant investment in its iron ore export capacity in the Pilbara region of Western Australia, with the approval of the new Mesa A/Warramboo mine in the Robe Valley and Brockman 4 mine near Tom Price.

The combined investment of US$2.42 billion (nominal terms, 100 per cent basis) in the two mines will ensure that Rio Tinto's leadership of the Pilbara matches its unparalleled global position in the iron ore industry. The mines will begin production in 2010.

 

[Aaron Sice]

nice

 

[redwing]

Cable Car sounds good

 

[Aaron Sice]

yeah i saw this today - a bit more believeable than the "Jupiter Family Robinson" thing they dreamed up before.

still not enough open space though.

 

[Ausprop]

I preferred the carpenter vision personally, but this thing is ok. I say stuff CHOGM, get building now whilst there are some trades available. CHOGM can always doss down somewhere.

 

[gooram]

I'll be very surprised if any of us get to enjoy this

 

[Aaron Sice]

I preferred the carpenter vision personally, but this thing is ok. I say stuff CHOGM, get building now whilst there are some trades available. CHOGM can always doss down somewhere.

don't go greasing the wheels of the 5 tier (soon to be 6) planning system - you'll end up "disgraced" like Brian Burke...

 

[Norwester]

Redwing,

Hate to rain on the parade, but you forgot the date............(these jobs are nearly finished)

26 November 2007
Rio Tinto invests US$2.4 billion in two new iron ore mines in the Pilbara
Rio Tinto has announced a further significant investment in its iron ore export capacity in the Pilbara region of Western Australia, with the approval of the new Mesa A/Warramboo mine in the Robe Valley and Brockman 4 mine near Tom Price.

The combined investment of US$2.42 billion (nominal terms, 100 per cent basis) in the two mines will ensure that Rio Tinto's leadership of the Pilbara matches its unparalleled global position in the iron ore industry. The mines will begin production in 2010.

ciao

Nor

 

[Ausprop]

these jobs are negligible compared to the tsunami of investment expenditure about to hit us next year. (actually i can see this as the only reason for the RBA to raising rates so aggressively - and will likely to continue once things really gain traction). had a good chat to a guy in the exploration area, he said the numbers and sheer scale of projects kicking off now will make the last boom feel like pinch. the tip was that if you want a welder or a large delivery etc then you had best hop to it whilst they are available

broome, karratha, derby, newman, onslow etc will be ground zero

 

[redwing]

C'mon Nor

Where's the WA spirit

I see Rio has sold Iron Ore to India now as well, they must be happy (selling ice to eskimo's)

Don't know whats happening with Windimurra, another revival?

It looks like Canadians may have purchased Ravensthorpe?

Tectonic, Karara, Boddington Bauxite, Samsung at Collie, BHP Billiton Iron Ore RGP5 & RGP6, Jack Hills Project, Oakajee, Balmoral South, West Australian Iron Ore Project, West Pilbara, Ridley Magnetite, Roy Hill, Spinifex Ridge, Argyle Underground (?)

...all interesting projects

Pipeline projects stave off WA recession April 2009 news, but still relevant with the projects

Mining infrastructure projects commissioned before the global economic slump had helped Western Australia sidestep recession, a national report card by Access Economics confirmed today.

Access's Investment Monitor for the March Quarter found that $54,709 million worth of infrastructure projects were under construction in WA - well ahead of the next best performing states of Queensland ($39,106 m) and New South Wales ($27,527 m).

Access found that while many of WA's mining operations had scaled back, there was still "plenty of work to be done on new resource projects which have received commitment".

Current projects helping to keep the WA economy in the black included:

. Woodside's $11.2 billion Pluto LNG development off the state's north-west coast;

. BHP Billiton's $7.4 b Rapid Growth iron ore project in the Pilbara, slated for completion in 2011;

. Newmont's $4.5 b gold mine expansion at Boddington;

. The $2.5 b Worsley Alumina refinery expansion at Collie, delayed but due for completion in 2011; and

. Santos' $800 m Devil Creek project in the Carnarvon Basin, set for completion in mid 2010.

Although the report said WA's "mining investment boom rocket" was "being rapidly defused at present", the state's infrastructure investment actually increased slightly - from $171,814 m in the December Quarter to $172,119 m in the March Quarter.

In the March Quarter, WA accounted for 27.2 per cent of national infrastructure investment, followed by Queensland at 21.6 per cent.

"The resources states therefore have the most to lose - but perhaps not in the short term," Access found.

"There remain a lot of legs on mining investment projects underway, with many of the larger ones not being completed until 2010."

Infrastructure investment in WA's mining and metals sector for the Quarter eclipsed that of all other states and territories combined. The state accounted for $127,860 m of the national total of $248,428 m.

Its interesting to see some of the gas projects underway and the stages of these projects, some going into 2015 and beyond

 

[Aaron Sice]

anyone know what Boddington is worth rent wise? very hard to find real - non resi - info.

 

[redwing]

Newmont Boddington Gold Mine now out of construction and into production, dunno about rents in the town, they have on-site accommodation also

 

[redwing]

Just to keep this thread ticking along..


Boom times bigger than the last predicted

WA's peak business body has predicted a rise in growth and a fall in unemployment as the state faces an economic boom even bigger than the last decade

The Chamber of Commerce and Industry has released the first quarterly outlook for this year and has revised its growth and unemployment forecasts to show a more positive outlook for the economy.

The Chamber says increases in consumer spending and business investment, combined with an improving housing market and strong international economic growth, will push WA's growth to 1.5 per cent this year.

The Chamber's Chief Economist John Nicolaou says the jobless rate will continue to fall during 2010.

"The unemployment rate for this state has peaked around 6 months earlier than what we expected and we are entering a phase where businesses will be hiring more than shedding workers," he said.

"We now expect the unemployment rate to average over the course of this financial year just five per cent."

The Chamber predicts the jobless rate will continue to fall to four per cent within the next three years.

Mr Nicolaou says the state is in a good position.

"What is becoming increasingly clear for Western Australia is we are on the cusp of a new period of economic growth and prosperity which potentially will be stronger than the previous boom that we experienced last decade," he added.

And from YIP

By Your Investment Property magazine


After a lacklustre performance in 2009, property investors across Australia can finally look forward to a bumper year in terms of rental increases.

According to a report by Australian Property Monitor, NSW property investors are poised to double their rental income in 2010 with houses set to fetch $500 a week in median rent.

Melbourne rental properties are also forecast to resume its long-term growth trajectory, with rents expected to climb by an average of 5% t0 6%.

APM said the strongest growth in rents is set to occur in both Brisbane and Perth. Median house rents in Perth could hit $400 or an increase of 11%, in line with the average growth rate of 12.4% recorded since 2003. Brisbane rents are also expected to grow solidly, surging to around $400, with growth rate closer to the 8% expected.


"Brisbane and Perth are poised to outperform the rest of the country as their property markets play catch up to Sydney and Melbourne," said Matthew Bell, economist with APM.


The temporary increase in rental supply over 2009 is also expected to be soaked up quickly this year as buying a home becomes less attractive for first homebuyers.


Cont....

 

[Aaron Sice]

this is going to be a state of have and have nots.