How many more years of pain for the Perth market?

South Karrinyup is just next to Newcastle.

 

I have not paid attention. It could be the price bracket. I will check it out and get back to you

 

Booming!

 

Went out in Mt Lawley last night for the first time in years. The restaurant was busy, but we went to a bar afterwards and it was completely dead. Four small groups of people in the whole bar from 10:30pm until midnight. So different from the Beaufort St I knew back in the day.

 

Here is a renovators delight https://www.realestate.com.au/prope...e.com.au/property-house-wa-dalkeith-121301214

 

Lol..
Karrinyup is booming.. ****, I think Ald is right.
As you can see from the below:.
YIP mobile

 

Oh no not at all! Those stats include the dreadful Karrinyup North. You have to just look at the very special pocket of South Karrinyup around Gamble Way. That special pocket is the only place to invest in Australia right now if you want to make money.

 

Luxury market still full of bargains well below replacement cost BUT more hints/evidence of the fact that the tide is turning.

For the last few months, searching for houses in nedlands that are not knockdowns will result in a large % showing as under offer or under contract. There's also been a noticeable shift away from seller listing it with a price and going towards tender/set date type sales, with a surprising number having at least 2 buyers putting offers in, got a long time it was just dead out there.

Bottom has lifted slightly, what would have sold for (and did sell) around 1.25m 12 months ago is going a tick over 1 4m now. That's for old but liveable homes on large blocks .

Your crazy bargains at 1.85m for a renovated and fully done up single storey 4x2 minimum family home on a good street , often where previous owner paid around the 1.7-1.8m for block+old house and spent 500-800k on it, is now anywhere from 2.05-2 25, with some exceptions.

Someone trying to be a hero and picking the bottom in the luxury market has potentially cost themselves 400k in 6-9 months.

There are still bargains and different areas are earlier in the recovery cycle IMO but it's something I've strongly felt for a while now and it's starting to be more obvious

Mt Lawley still slow but i dobt follow it as much, just doing research for someone ATM

This house, on a good street close to Beaufort/Walcott shops and train station but no strip visitor traffic, cost owners around 2.2m all up i reckon in 2010.

Block bought for 940k, after demo, all construction costs, holding costs, consultants etc I'd be shocked if it was less, could be more.

Sold a week or so ago for 1.415m, on a near 800sqm block in a very good suburb around 3-4km from city.
6 months ago a property in the area on i think 1050 or so, 5x3 including the bed+bath+living in studio above purpose built rear garage, with nice pool etc,.Not a cent to spend, went for around 1.65 or so from memory.

You couldn't build it for less than 2.4-2.7

Why more people aren't doing it or why people are spending the same building in far inferior locations just boggles the mind.

If someone is an owner occupier, can afford it and hasn't even contemplsyed upgrading 2 or 3 tiers in this market they've don't themselves a disservice.di the numbers on the 2nd Ave house.

When you compare the mortgage oayts on the 2.2m build and consider that salaries were lower 9 years ago when block bought it 7 when finished, the sellers of the property were paying close to 50% more as a % of their incomes.

Quite simply st the moment many people have the chance to buy that family home on a big block in a say Mt Lawley or Bicton or nedlands when in the past the same person with the same general financial strength would have been looking at the same kinds house in say Alfred cove/Melville i/o bicton/attadale/applecross etc or a smaller house on those smaller blocks in the pocket of nedlands north of Stirling near Hampden road.

Right now you can buy a 3x2 smallish but pefctly functional renod home in that part of nedlands on 650sqm for around 1.15-1.2m

All day everyday people are spending more on smaller blocks in far less appealing areas with much less growth potential.

Wake up Perth! So much opportunity has been around if you have some cash, earning capacity and willingness to at least look

Some examples

-2nd Ave mt Lawley house mentioned above
http://www.realestate.com.au/sold/property-house-wa-mount+lawley-124258834

- old house on great block in Mt pleasant/applecross very close to river i was involved with, purchase Nov/Dec 2015, settled first half 2016, cash offer received prior to settlement of over 30% over purchase price.

- near new massive 7/800 odd 3 storey home for high 3s that previous owner spent close to 6M on,

- renovated family homes in dalkeith on full blocks for low to high 2s that cost over 3.5m not all that long ago, some over 4m,

- penthouse for 2.3m in 2015 0r 2016 that seller paid around 3.8m for OTP in 2005, settling i think 2008

- penthouse for 2.4m in 2015 that developer rejected 4m for in early part of this decade and then sold to previous owner a year later for 3.5m

Could keep going

All those examples you're talking people paying potentially half in mortgage payments, some even less, than what the sellers were paying when they purchased.

 

Unfortunately this started a while back, even when thr economy was booming.

Some similarities with subi, although here it was really mainly the commercial rents as well as surrounding area house prices rising too much.

Look back to 10 years ago, there were nearly no franchises, i think just the HJs, possibly gelare.

Now there's gyg, grilld, was a salsas, generic mexican in form of Pancho's, Baskin and Robbins etc . Rent prices went too high so smaller individual owner operators moved to North bridge, north Perth, now Vic park, cheaper parts of the city and leedy instead.

 

Personally I think there's more value in North Scarborough.

 

Now youre just being silly!

 

@sanj

Is immigration to Perth popular? Can you see long term growth for the employment rates? Is Perth on a trajectory to become a world class city (like for e.g. Sydney) and have a balanced/diversified population and economy?

If answer is yes to all of that, then its definitely time to buy!


I think for the super long term, the main advantage Perth has is that it is the primary city of the entire western side of our continent, a pretty big deal!

 

Do you realise there's nothing between Adelaide and perth and a lot quite uninhabitable, except for the holes in the ground

The closeness to Asia is a different story though

 

The price range is a little tight. How much do they want for it again?

 

I am currently staying in Nedlands just behind the shops and the place seems dead to me, the restaurants have no one in them and just see a handful of people in the coffee shops. Parking is a breeze and being from Sydney it is just weird to see but I can't compare it to a time prior to now. Alot of young people going to the uni and hospital for work but I guess they are renting or at home with parents?

 

Not sure what bar you went and if it was mt lawley or highgate part of Beaufort street, but keep in mind it is long weekend and a lot of people head down south this time of year. Also Friday and Saturday nights are not really busy when it is a long weekend, you should see tonight (Sunday night)... far far from dead

 

Perth must be booming only wanted $4,700,000 April last year for it.

 

I was in Highgate today and the place was buzzing, taking into the account the public holiday the cafe we were in was packed full of families. Was alot nicer than dead end Nedlands

 

Yes it was, if you can't already tell from posts and love for the suburb, I live in Highgate and normally it is busy but today was exceptionally busy... probably helped by Hyde park festival and beiber concert at NIB. Good to see though

 

Highgate seems nice, has a nice feel to it

We ate in Blacksmiths and thought the food was exceptional