How many more years of pain for the Perth market?

Discussion in 'Property Market Economics' started by Citycat88, 12th Aug, 2016.

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How many more years of pain for the Perth market?

Poll closed 23rd Jan, 2020.
  1. 1 year

    45 vote(s)
    15.3%
  2. 2-3 years

    129 vote(s)
    43.9%
  3. 4-7 years

    60 vote(s)
    20.4%
  4. 8+ years - similar to the GFC in some other countries

    34 vote(s)
    11.6%
  5. Indefinite - a Japan style asset bubble collapse for decades to come

    26 vote(s)
    8.8%
  1. adam duckworth

    adam duckworth Well-Known Member

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    perth
    hey, atleast its good news!
    yep I was in the same boat, took 8 weeks and a $40 per week decrease in asking rent, next door is currently rented at 430pw which their lease commenced last year, (exact same house built by satterly as displays), the other side of me is 440pw which was started last year too, and now a year later I can barely get $390 for mine...
     
    Perthguy likes this.
  2. Perthguy

    Perthguy Well-Known Member

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    I actually did ok with the reno. We wanted $440 pw but dropped it to $420 after 4 weeks. Got a tenant after 5 weeks I think.
     
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  3. thydzik

    thydzik Well-Known Member

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    Perth
    I have got one property i'm trying to rent out, I had similar properties with a lot of interest mid year.
    but I have noticed that there isn't much interest this time of year.
    possibly due to up coming holiday period.
    I might have to do airbnb, which would be a good this time of year.
     
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  4. adam duckworth

    adam duckworth Well-Known Member

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    not too bad, better than my scenario haha! where is yours??
     
  5. Sui Xiang

    Sui Xiang New Member

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    sydney
    When you see newspaper articles titled " India is going to rule the world". Just kidding.

    What I believe is the next China (which imports WA resources) might be India.
     
    Colin Rice likes this.
  6. Perthguy

    Perthguy Well-Known Member

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    Perth
    Cloverdale
     
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  7. adam duckworth

    adam duckworth Well-Known Member

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    perth
    okay so closer to the city than mine, mines down in secret harbour, I'm hoping the paganoni rd station goes in soon, which will make it feel more "connected"
     
    Perthguy likes this.
  8. Citycat88

    Citycat88 Well-Known Member

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    Perth
    Rents have been falling since 2014. Amazing that nearly 4 years later, we are still having to reduce rent! I don't think I've ever seen such a bad market for such a long period of time.
     
    adam duckworth likes this.
  9. thydzik

    thydzik Well-Known Member

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    Just happened to have a tenant who is coming up to their lease renewal ask me to drop their price by 14%.
     
    adam duckworth and Perthguy like this.
  10. Scaphella

    Scaphella Well-Known Member

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    We are getting 30% less on two of our rentals but I guess during the boom the rent amount most Perth landlords became accustomed to was not really sustainable. It’s good to see the reiwa numbers heading in the right direction though, could mean a rental increase when it comes to renewal time next year, even $10 is $500 a year “that’s a trip to Bali!”. :D
     
  11. SOP

    SOP Active Member

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    Melbourne
    We have also seen a 30% reduction in rent. It may take up to a decade to reach the rents previously acheved.
     
  12. sanj

    sanj Well-Known Member Premium Member

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    A decade? What are you basing this on because i can't see it taking half the time let alone 10 years
     
  13. SOP

    SOP Active Member

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    Melbourne
    My comments relate to a particular market and property type and may differ from other areas. With the amount of stock available for rent , i dont expect to be increasing rents for at least 2 years. I would expect a vacant property if i did too.
     
  14. sanj

    sanj Well-Known Member Premium Member

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    Out of curioisity what sector and type is this? 2 years i def possible for some niche sectors but a decade to recover to previous levels is highly unlikely imo
     
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  15. Vultures

    Vultures Well-Known Member

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    Tassie
    We took a 30% hit on rent as well, in South Perth. And almost as much in Mandurah. It's not pretty!
     
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  16. DoubleD

    DoubleD Well-Known Member

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    Perth
    32% hit on my Padbury 4x1 $590 2013 today getting $400
    :(

    Not to bad compared with the poor tenant who went from $400 to $590 during the mining boom, had a hit of 47% ;)
     
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  17. Scaphella

    Scaphella Well-Known Member

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    $590 for a 4x1 in Padbury ? now that’s killing the pig...!
     
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  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I think this illustrates what I suspect most of what Perth has actually experienced.
    I hear a lot of people talk about how much rent they are losing but they are comparing it to severely abnormal times (the severe shortage of rentals for the resources construction boom). Yes you can say that rents are now the same as in 2010 BUT that negates that for 2-3 years there was significant rent money falling from the sky.
    What I think is that normal is somewhere around 5% above where we are now.
     
  19. Perthguy

    Perthguy Well-Known Member

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    I was getting $440 for a 3x1 in Cloverdale. Currently $280 pw.

    I agree. There is no way that $440 for a 3x1 in Cloverdale is sustainable. Perhaps the current $280 pw is slightly under. I think around $300 pw is fair market and sustainable in the long term.
     
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  20. sanj

    sanj Well-Known Member Premium Member

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    Good point, what's also not acknowledged enough imo is the importance of quality product and that too the right kind of product.

    In the past even crap saw decent rent gains, now the market will punish you well in excess of previous discounts should the rental be badly maintained/presented or simply not all that popular in that area

    You can now buy a near New 3 bed villa in your nollamara balga type areas for under 300k and the market is right fully teaching all those dreadfully lazy developers and investors who just built the most generic brain dead product and tried to hide that behind shiny tiles and stone tops etc
     
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