WA Perth is entering Boom cycle

Discussion in 'Where to Buy' started by Ald, 12th Nov, 2016.

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  1. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Ah - gotcha. I am hunting whales - mainly albino dwarf pygmy whales - development sites that stack up.
    I thought you meant sites that were feasible were in plentiful supply - they unfortunately are not.
    Most of the stuff which I have seen, especially around there, is either people who are priced too high and still want heyday prices or they are a fair price but just don't stack up as end values have fallen due to oversupply of finished stock.
     
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  2. lightbulbmoment

    lightbulbmoment Well-Known Member

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    When i rock into Perth next week first thing ill be saying is take me to karinyup south...
     
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  3. Perthguy

    Perthguy Well-Known Member

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    Yes @Westminster, I agree. I have run very basic numbers on all those areas I mentioned and nothing is stacking up from my point of view. The only glimmer was Gosnells near the train station, where a quad site is low $300k for over 1,000 sqm, R40. 4x2 comps at $409k but obviously only 3 of that size house on that size block. If I could get the land component down to $125k per dwelling including clearing and servicing, then maybe. Still seems tight though
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Yup and the much higher total project cost, limited finance products etc make it a little more unattractive.
     
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  5. mrdobalina

    mrdobalina Well-Known Member

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    Interesting thread. I'm gonna head out to Karrinyup South with my bag of $1.5m cash this arvo. o_O

    Approval of large scale projects doesn't mean they will go ahead. No investment bank is going to fund a new $5b iron mine with the projected glut of global supply. Similarly the twin towers won't get off the ground in the next 5 years when cbd office vacancy is more than 25%.
     
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  6. DaveyB

    DaveyB Well-Known Member

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    Sometimes he is entertaining, often it's pure delusion. (Ald that is)
     
  7. Citycat88

    Citycat88 Well-Known Member

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    Why delay things by a week? Karrinyup South house prices will double by then.
     
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  8. CK_Invest

    CK_Invest Well-Known Member

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    from the outside looking in, perth looks like it has a lot of supply

    and also from the outside looking into this thread, a certain poster here sounds a lot like those you find on the hotcopper site trying to hype up a particular stock due to ulterior motives
     
  9. JohnPropChat

    JohnPropChat Well-Known Member

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    Lots of supply yes, but good quality stock is going for bargain prices. No one can deny that.

    Ah yes, we have a resident spruiker. All capital cities and some regional towns *cough* Gold Coast *cough* have one each too
     
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  10. Perthguy

    Perthguy Well-Known Member

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    Lots of supply but very few good deals. It would be different if you were upgrading to a better PPoR. Then there are lots. Not much for investors though IMO
     
  11. Perthguy

    Perthguy Well-Known Member

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    The more I look at the numbers the less I like it and I started out luke warm.

    Numbers don't stack up at all for me on this one. I think my next project will be a retain and build. Reno the front, subdivide it off, sell and build out the back. Subject to the numbers stacking up of course.
     
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  12. Perthguy

    Perthguy Well-Known Member

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  13. JohnPropChat

    JohnPropChat Well-Known Member

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  14. Perthguy

    Perthguy Well-Known Member

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    I don't do buy-and-hope. I do buy and add value. It's been working so far :D
     
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  15. Hwangers

    Hwangers Well-Known Member

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  16. Perthguy

    Perthguy Well-Known Member

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    I think they don't. I was just posting it as an example of what I can afford to do. Hardly a dream project :( and the numbers don't stack up either
     
  17. RetireRich101

    RetireRich101 Well-Known Member

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    If retain and build doesn't stack up for such low entry purchase (armadale one) , then one would think majority of perth suburbs dont stack up either..?
     
  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Not necessarily. Like any state where you look for a retain and build they don't all automatically stack up and it's not about the entry point price. The price to construct a single storey 3 x 2 rear house in Armadale vs Innaloo vs Yokine is the same plus $10-20k more for some higher level tweaks like better tiles, higher ceilings, more stone etc. But the buyers in Innaloo and Yokine have the potential to pay more for the end product.
     
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  19. JL1

    JL1 Well-Known Member

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    Entry level is a sub-market, and like any market it is susceptable to oversupply. New build suburbs are heavily oversupplied (go on realestate.com.au and see how many properties are listed in Baldivis, nearly triple the listings of the city). Buyers looking to spend under 500k have abundant selection - 4x2 further out, townhouse/duplex further in, or 2 bed apartment quite central.

    Blackburne property developers have been very successful by targeting a higher level of buyer. They have recently completed Aria in Swanbourne, their Oracle apartments are under construction, and they have sold more than 60% of their Enclave project in East Perth to name a few. Meanwhile Stirling Capital have been struggling for years to get Verdant off the ground and gave up advertising Stirling 108, and ZoneQ don't seem to be making huge progress on NSpire, all within a few hundred metres of Blackburne's project.

    The opportunity in Perth at the moment i think is definitely in the higher end.
     
    Last edited: 26th Jan, 2017
  20. Perthguy

    Perthguy Well-Known Member

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    Most development sites in Perth right now don't stack up. This applies to demo and build and retain and build. Buy prices are still top high and rents and end values for builds are too low. I believe that there are deals in any market. In Perth right now it takes a lot of time to find a good deal.