WA Perth is entering Boom cycle

So many lols in this thread.

@LifesGood you forgot to mention the street? I need to find a local tax haven.

 

In

Wow that's a nice jump. I'd say there are a few people upgrading to the area. Generally most stuff is around $1.2 but there were a couple of $2m sales last year so that probably skewed the numbers a bit

 

keen to hear people's thoughts on how the WA election may affect the housing market? what were the main sticking points when it comes to housing policy for each party? from a brief overview I couldn't really tell much whether either party would benefit investors in the short-medium term

 

Pauline Hanson for PM of WA!

 

WA's biggest pitfall is jobs. Elections are a boost because the party in power holds off spending in the leadup to "hold ransom" their moves. They can say things like "if voted in, we will spend money on XYZ", where a chunk of that expense would have been routine anyway.

Which ever party does get in to power then has a honeymoon period where they know people need to see and feel change. The shift in political focus creates jobs through government spending, and also through businesses re-gearing (eg. when Abbott was voted in, engineering consultancies would have done well to beef up their capability in Roads infrastructure).

New election cycles also give people more political certainty of the next 3 years out, which helps sentiment. Even if its a **** government, at least you can reliably plan your next 3 years around it.

So in short i see two benefits:

• short term increase in jobs...
• which helps the overall consumer sentiment rise

It brings back buyers who have been holding off.

 

The current government $15k FHOG is a bit of a boost for new builds

 

My mate is still looking for a house in the Bayswater/Bedford/Inglewood area. Just notice this:

Bedford all listings: 63. Exclude under offer: 38. (40% are under offer)
Bayswater all listings: 209. Exclude under offer: 161. (23% are under offer)
Inglewood all listings: 55. Exclude under offer: 35. (36% are under offer)

The market is supposed to be dead but properties are moving if under offer is any indication.

 

How's this for a freaky story.
I put my 2 Clarkson duplexes on rental market at $375pw each. They are a 4 x 2 and a 3 x 2 + extra living but exactly same size. Market evidence and known comps puts 3 x 2 at $350 and 4 x 2s over $400 but as they were the same size I put them on at $375pw each.
Thunderous rush on the 4 x 2 within couple of days on market and I was offered $420pw for it - yes over the asking price by $45. One of the applicants for the 4 x 2 was asked if they wanted the 3 x 2 instead and they went for it at $375. Both rented within a week of being advertised.
Yippeee
I think like @Perthguy has reported about Cloverdale there is a dearth of 3 x 2s but not many 4 x 2s.

 

That's awesome! Nice one..

 

Great result

 

Happy days @Westminster

 

Well done.
For the past few years i keep reading that household sizes keep shrinking and people dont want large 4x2's and would prefer larger 3x2's. Is this a case of the experts getting it wrong as people use the other rooms as hobby rooms, study rooms or pray rooms or did people see a 4x2 priced the same as a 3x2 and went nuts because they thought they were getting an extra room for free?

 

This is interesting but only if we could compare it to another point in time. If properties are moving, shouldn't no of sales per month be increasing?

PP

 

Ive been tracking daily this year, there is strong movement in well located suburbs. The cbd has dropped from over 240 for sale to low 190's in just a few months. Mount lawley for the last few years had had at least 4-5 older townhouses in the $400-450k range, and when i last checked it only had one. No doubt even a small increase in demand will be reflected in prices.

Butler, Yanchep, Baldivis and the like are still showing very high listings. There is a huge portion of available stock accounted for by the outer new build suburbs so the vity average doesnt look great.

 

I'm really not too sure. I know families are getting small and most don't need more than 2 bedrooms but there are many suburbs where 3 kids are not unusual so maybe that has something to do with it. I, myself, couldn't decide whether to build the 4 x 2 or the 3 x 2 so did one of each.
There is 54 rental listings for 3 x 2 in Clarkson and 41 rental listings for 4 x 2 so it's not like there is a huge shortage of 4 x 2s.

 

Is the inner city better priced and sellers more realistic now or have the people on the sidelines starting to upgrade due to increased consumer confidence due to the resources bouncing back. Or could it be eastern states buyers which are getting out of the overheated markets over there ?

 

Could be all of the above. Demographics show perth has decreased its number of people in their 30's for the first time in a long time, so likely an oversupply of entry level family housing.

I also speculate that as many fifo construction jobs wind back, demand for housing located in easy access to jobs has increased proportionate to other housing

 

Not necessarily. It would depend on how many properties are being listed. With prices so low, fewer sellers are prepared to list their properties.

 

Nice
Seems like the rental market is slowly picking up too.

 

Yeh but do any of them have a magic rust wall?