How many more years of pain for the Perth market?

Has there been a turn around in investor demand?

 

It’s a hail Mary that will fall flat on its face.


Honestly, how many first time buyers in Perth are being denied credit?


The problem is not a lack of buyers with credit. It’s a lack of buyers full stop

 

i live in Nollamara ,on the back fence is empty land there with big sign with 3 units ,no takers yet
6 months past since i moved there,nothing happens
no wonder the government given credit away

 

I drove down Nollamara Avenue a few days ago new units in progress on one block (slabs poured), plumbing going in on another block and since the last time I was down that way another block has had its house demolished.

 

Selling off the plan is very hard in this market. Buyers will generally feel safer buying something that is finished so they can see the finished level of quality and won’t have to worry about future bank policy changes and valuation issues.

 

Of the plan is very difficult, especially if they are not street facing sites.

I’m expecting and also hoping things will pick up towards the end of next year.

Having said that I find some people are extremely busy while others are not.

 

I dont think investor demand is the real problem , its the other 17,000 that are trying to sell
According to some old data from the weekend West Australian real estate facts and figures, early 2014 had property for sale in the high 8000s/ low 9000s, by the end of the year it was up to 12,000, it hovered around the 14-15,000 for a few years, but lately it has been hovering around 17,000 and just going sideways.

 

It does indirectly, or at least they coincide. For people who have lost or or are in negative equity, when they encounter a cashflow squeeze they hang on longer than they would with healthy equity, hoping to ride out the downturn and recover their losses. Or because they can't actually pay out the loan if they sell. If the market turnaround doesn't come then they're out of options and they hang on to the bitter end.

I think this explains much of the big increase in 90+ day arrears for WA in the last year. The length of the downturn has reached the point where the hangers on are running out of oxygen.

 

and then they get broke and lost everything they work for

 

This thread was started in 2016. So whoever guessed 4-7 years were correct.

 

There are Other threads on Perth Market Somersoft forum prior to this. I posted a link on this. I will try to dig it up

 

Glad to see things beginning to turn around for Perth.

 

Wow forgot about this thread. I wonder what would of happen if covid didnt exist.

 

There are too many what if's. The difficulty is, no one would have guessed covid, trade-wars, etc., in 2016. Even fewer would have guessed the share market rebounced since March this year despite the world is in a mess. And I am sure more surprises are in the pipeline.

I bought in 2016 then 2017 in Perth. There were so many "falling knife" comments on this thread. And many Perthians couldn't wait to escape to the East. They arrived and bought in Sydney and Melbourne at their peak. Fast forward 2020, those who sold their Perth properties in 2016-17 and bought East, would have suffered a double whammy.

 

i am pretty sure 2016-17 was still booming In Melb/syd
It really depends on what and where you purchased, product. I sold both my Melb development projects and made a tidy profit during this time

I dont think I would be wanting to building land and house packages in outer burbs. There may be huge oversupply

 

Woot I know. I predict it will start to gather momentum in 2021 and take off in 2022

 

I predicted an 8 year slump (in 2016), but the market started to recover in 2021, was off by three years

 

I voted 4-7 years, thank goodness things have turned around…

 

so is the pain finally over?

 

Yes.