How many more years of pain for the Perth market?

I mentioned units/apartments

Apparently Houses are on upswing but it wont be a Syd/Melb style boom just dont have the same dynamics. Will post something shortly on this on Brissy thread
Matusik has a good grip on this market, even though vested interest he keeps it real backed with research/evidence

 

yeah units are not doing great but I doubted that many people here on the forum have too much interest in units in Brissy in general. Same can be said about Melbourne too as units are way underperformed compare to houses.

 

Yes apartments oversupply Melb
Units have not had the same growth as houses in Melb. Definately need to be buying right product for growth

Stuff Perth go to Brissy, Only joking

 

The real estate section of this week's local Cannington paper has the average amount of time a rental property is vacant going up in Canning Vale compared to the previous quarter.

I know that this might not be the case all over Perth, but the southern suburbs region just adds to what real estate agents are also saying in Vic Pk and further east up to the airport.

Also shows that just because vacancy rates are falling, that in itself doesn't say much, it can just be a reflection of falling supply being netted off with by lower demand. The average time a property remains vacant is a better indicator.

 

Little off topic but re units if I'm ever gonna buy a unit anywhere in oz as an IP then it really needs to have a few X factors otherwise I will always go for houses . I'm saying this despite doing well with some units but they all have a few big X factors.

 

such as...in your opinion/experience?

 

Something in limited supply. Small complex near water or with good city or park views or can't be reproduced
Eg
13/1010-1018 Wellington Street, West Perth, WA 6005 - Property Details

 

What @Big Daddy said. Also something you can add value to. I'm talking about units in general, not commenting on Perth market specifically .

 

Seek mining and energy jobs ads up by 54% YoY
Job ads surge 15% amid strong employment growth looks like mining towns might be a good short term bet... I will play safe by stay close to Perth...

 

Can you explain how vacancy rates fall with lower demand when supply is falling too?

 

Doubt it. Most of those jobs will be either fifo or corporate. Mining town speculation only pays out during a construction boom..

 

Sorry, I got a bit twisted there. What I meant is that the vacancy rate can still fall if the average time which a property sits vacant rises. The average time it takes to lease a property is the more valid measure, just as it is with home sales.

 

I think I know what you're saying but vacancy rate is best viewed as a trend. If properties are leasing quicker that means at the time the snapshot is taken to measure the number of vacant properties vs. number of total property available for rent, the first number is more likely to be less. I guess in theory it's possible as a one off, but I think would be unlikely on a data set over a reasonable period of time.

 

House prices decline in February

Perth house prices fell slightly in February, in line with the national downward trend for the month, according to the latest data from CoreLogic.
Perth recorded a 0.2 per cent fall in house prices in February, taking the annual price movement to a 2.7 per cent decline.
Nationally house prices dropped 0.4 per cent for the month, with Darwin (0.9 per cent) and Sydney (0.6 per cent) registering the largest falls.
Hobart house prices were up 0.7 per cent.
For the year to February, Australian capital city house prices have risen 1.5 per cent, led by a 13.1 per cent increase in Hobart and a 6.9 per cent jump in Melbourne.
Sydney (-0.5 per cent) and Darwin (-7.4 per cent) are the other cities with negative price growth for the year.
CorLogic head of research Tim Lawless said conditions improved in the second half of the month.
“The rate of decline eased over the second half of February although values have fallen in most capital cities during February, the CoreLogicdaily index indicates that the rate of decline eased late in the month, in line with improving auction clearance rates,” he said
“Sydney, Melbourne and Perth all recorded more moderate falls in values throughout February than they did in January.”

 

Perth Weekly Sales & Rental Figures Snapshot|27 February 2018

 

"REIWA members reported 8,436 rental properties available in Perth this week.This figure is 4.6 per cent lower than levels seen four weeks ago and 18.5 per cent lower than the same time last year."

 

Yes we want supply to go down.... thanks

 

What do you think of the sales numbers? I wonder how long it takes to sell a property now and how much discounting there is in comparison to this time last year, that would be interesting to know....

 

I've found number of days to sell to be a tricky stat. No matter the economic climate there will always be delusional people who don't price their property correctly and have it on the market tooooooooo long and have to drop price which impacts the discounting figure. If it had been priced more correctly at the beginning it would be less days on market and less discounting.

I was a bit surprised to see the sales listings jump back up but it is a traditional time for listings to improve as people tend not to list in Dec/Jan. So surprised but not surprised. I am such a fence sitter today

 

I have heard of houses going under offer before the first home open if they are priced right.

Example: 87 Townshend Road Subiaco WA 6008 - House for Sale #127490186 - realestate.com.au