WA Perth is entering Boom cycle

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

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  1. WattleIdo

    WattleIdo midas touch

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    The crappy houses in surrounding suburbs could be interesting but that's where there'll be vacancy, I suppose.
    So at this point in time, seems that Perth lifestyle is going up a notch and could still be regarded as unaffordable by many.
     
  2. Hwangers

    Hwangers Well-Known Member

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    ah I see - so history does repeat itself , I think similarly priced examples befell Sydney post-GFC when upmarket suburbs were decimated, I'm sure plenty here on PC have leapfrogged their portfolios due to the GFC!

    *knew an uncle of a friend - loaded to the tilt, splashing down crazy money (at the time) on unitblocks and luxury/beachfront/waterview properties, we all thought he was insane (he is but that's another story) and now, well how!

    funny how its true that the rich keep on getting richer - need deep deep pockets to play that game

    have to feed on the scraps :(
     
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  3. Perthguy

    Perthguy Well-Known Member

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    Mid to inner ring development sites have crashed. Thornlie, Beckenham, East Cannington, Queens Park, Cloverdale, Belmont, Bassendean, Embleton. All hit hard.
     
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  4. devank

    devank Well-Known Member

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    Shhh... There is a Secret Harbour too. Don't tell anyone.
     
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  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It is somewhat similar. Instead of the GFC we've had a lot of redundancies and job losses and people couldn't pay their mortgages so some of them were forced to sell off first their IPs and then if necessary their PPORs. Some of them had invested in land to build on one day or as an investment and they were sold at losses.

    I know a number of blocks along the groin in Mindarie were owned by directors of Forge and were placed on the market and sold for less than what they paid for them during peak times.
     
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  6. Chabs

    Chabs Well-Known Member

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    What does the house price ratio measure?
     
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  7. radson

    radson Well-Known Member

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    the ho
    That particular house price ratio measures the ratio of median house prices in perth and sydney
     
  8. Perthguy

    Perthguy Well-Known Member

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    Does the ratio indicate a buy in Perth? ;) :)
     
  9. chesterfield

    chesterfield Well-Known Member

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    The contrarian, chartist and Warren Buffet types would suggest yes. The herd of developers on this forum would rather wait for upwards momentum first.

    An example are those who bought mining stocks early last year when no one wanted to touch them (but the charts showed they were great value compared to banking stocks for example). These people have now made at least 30% on those investments... but we all know property takes longer.
     
  10. turk

    turk Well-Known Member

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    This ratio can also change by Sydney prices going down rather than Perth going up.
     
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  11. SkyHigh

    SkyHigh Active Member

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  12. Perthguy

    Perthguy Well-Known Member

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    Agreed. I don't think we are at the bottom of the cycle yet, except South Karrinyup, which is booming of course ;) :)
     
  13. Hwangers

    Hwangers Well-Known Member

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  14. Phase2

    Phase2 Well-Known Member

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    Another Corelogic report though... I'd probably get better insights to Perth's property markets on used toilet paper...
     
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  15. JL1

    JL1 Well-Known Member

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    This is off the back of increases at the end of last year, so quite possibly the magnitude of this drop is just a seasonal effect. Adelaide and Brisbane also fell.

    Looking at sales listings, the over-supply is definitely easing in the right areas. Established suburbs, especially central, are getting considerably tighter. The CBD has even fallen from 235 properties less than a month ago to 196 today while other cities are increasing (except Sydney). For comparison, Adelaide has 291, Brisbane over 300, and Melbourne over 900 not including the pipeline of ~10,000+.

    As the monthly average house price is based on sales data minus outlier properties, i expect that the "average" may not move as activity returns this year to the lower end of the market, so keep an eye on suburb-specific statistics. Lots of inner-middle ring suburbs are now tracking less than 30 properties available, so a swing in sentiment will easily starve these. Outer suburbs like Baldivis, with its 843 properties available, will put a drag on the "average", especially as most properties there cost below the current average price.
     
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  16. DaveyB

    DaveyB Well-Known Member

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    That joke is getting really Ald
     
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  17. Ross Forrester

    Ross Forrester Well-Known Member

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    South Karrinyup booming.

    North Scarborough bust.
     
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  18. Ald

    Ald Well-Known Member

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    I had an offer of 1.1 million for my property in South karrinyup. Last week from my neighbour. I offered him the same price for his property. We laughed and said if we sell it will be to each other.

    South Karrinyup is value.
     
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  19. Big Daddy

    Big Daddy Well-Known Member

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    Menora is up 28% in the past 12 months. Only 20 sales but still this is quote large. Anyone know if some very expensive properties sold recently to skew that number ?
    reiwa.com - Suburb profile for Menora

    I only stumbled across risk number since I noticed Mt hawthorn was also positive in the past 12 months
     
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  20. DhuCat

    DhuCat Member

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    I had an offer a while back from a mate for my beloved Nissan Patrol. $2m he said. We both laughed about it. I'm pretty sure he was serious.o_O
     
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