WA Perth housing and unit prices slump

It's an hour by train from Perth, and easy access from here onto the freeway too which gives access to other employment. Madora Bay is the north side of Mandurah, the south side would take longer to get to the freeway.

The holiday home factor definitely had a part in Mandurah's slump - however, there's not a lot of holiday stock on the market now, those that needed to sell in the GFC have sold. The thing here is that it's no longer just a holiday home area. There are large housing estates popping up and it's definitely moving toward more permanent residents.

That said, because of the new estates I don't think that price growth will be fast in the near term as there is plenty of supply of new stock, but long term I think the prospects are good. I'm looking out for people starting to build on their vacant blocks in Old Madora Bay, and shacks getting demolished. Once that starts to happen in earnest it will be interesting times

Not sure about the breakdown, but a lot of young families in the estates, lots of FIFO, and a good smattering of well off employed people too. Seems to be quite a lot of local business in terms of employment and the normal services/retail etc. Not much industry here, but not far to Perth and other industrial employment areas.

 

To be honest, since they improved the road to the south west, it seems the majority would rather drive the extra hour and a quarter to get to Dunsborough, Yallingup, Margaret River etc.
I don't think you could put the slump just down to a correction.
There's far more attractive places in terms of weekender destinations further south that Mandurah and they're very accessible nowadays.

 

This is true, which is why we're seeing the move from holiday homes to permanent residents. The improved access to the city and all the attractions down south has made Mandurah on the radar to live rather than just a holiday destination.

 

I admit I know know nothing about Perth .

In Sydney , what was an exclusive weekender area ( palm beach , whale beech ) still is , but now is also a permanent residential area for the majority .

It's around one hour centre of Sydney , people like the packers have a place there .

In terms of the amenity of the area , are there nicer beach areas closer to Perth . Is it a bit like Sydney where all of the costal suburbs have a nice beach .

Part of the attraction of palm beach is it still feels like a holiday destination , so you can go there to get away from Sydney , where as the eastern suburb beaches are righ in the middle of suburbia .

Cliff

 

Forget Mandurah far more important issues, are you wearing Hugh Hefners smoking jacket?...Nice

 

Do you understand what has happened to this market???

This market is no different to Mandurah its been bleeding for years, got hammered in the last boom cycle, 2001-7 and never recovered.

When the market crashed the first things to go were the holiday homes and the luxury boats.

This is a much higher entry level, more pain, greater losses.



MTR

 

Hi MTR

not about to rush over there and buy. Just starting to do some early DD.

If I was about to buy there , I WOULDN'T be asking questions .....

Cliff

 

I understand, you mentioned in a previous post, I would be sending you to my shrink if you were about to jump in

 

There is a buyers agent already targeting Perth....he is low balling...he did this in Qld..and can't get deals now he is doing this in Perth. He is pretty smart...no competition in the market is how he likes it.

 

Saying I'd be crazy to buy now ....

For me , that's a reason to look

Cliff

 

Fair enough, I don't share the same view because I see the market is still in free fall.

 

It's been a sea of red lately for all the data reports for Perth coming from RP Data/Core Logic. The median dwelling price is down 4.5% year on year. Most analysts predict the fall to continue well into 2016.

 

When the market is falling it's the perfect time to get all your DD done and ready for when it starts to balance out. It's the best time to be asking questions and researching to my mind

 

Spot on

Makes it easier to pick the bottom if you're watching the market as it goes down .

Makes more sense to watch somewhere that peaked 8 years ago than somewhere that is peaking now .

Cliff

 

Not only sale values but also rents. My property in Willagee currently renting at $465 pw, I was told yesterday that if it hit the market today I would be lucky to achieve $400 pw and looking at around 5 week period to secure tenant, due to oversupply.. ouch. That is huge in terms of cash flow.

Sash
BA are in the business of sourcing properties they must buy regardless otherwise they are out of business, it does not necessarily mean the timing is right IMO.

MTR

 

Not sure what this post is meant to construe.
Are you alluding to the holiday regions that I mentioned?

If you are, I don't think you'll find any of them have sufferred quite the bust that Mandurah has.

Granted Yallingup would be a much higher entry level and it's quite exclusive but Dunsboruough, Margaret River aren't.
Parts of Mandurah would have sufferred as badly as places like Karratha, Port Hedland and that's not normal particularly considering it's not a resource based region and the rot hasn't completely set in yet.

 

You obviously not investing or playing in these markets during this time, if youi research and you will find South west has still not recovered from last crash, similar to what has happened in Mandurah.

As I mentioned first thing to go were holiday homes, property market crashed as well as stock market.

MTR