WA Perth is entering Boom cycle

I wonder how long those changes will take to filter through to property prices? Property prices tend to have some inertia that is difficult to turn around.

 

Because our labour is to expensive! Not good

 

Yes. Not good for the country but something is better than nothing.

 

Shame if you purchased in 2013/14 in Koondoola or Girrawheen you would have made a killing because these areas were earmarked for rezoning, higher density now ratified, 13 km from city, property prices increased 30%+

 

timing is everything, if you purchased in 2012/13 and sold prior to peak at 2014 while zoning was ratified there were massive gains to be made of course prices have now fallen back as have most areas in WA

 

Iron Ore Sinks With Metals After Rapid Surge Spurs Warnings
[Iron ore slumped as China again signaled it’s stepping up moves to reduce steelmaking capacity. Ten steelmakers in the industry hub of Tangshan in northern China will merge, creating a company with 8 million tons of annual crude steel capacity after 5.4 million tons is shut down. China’s government has pledged to reduce the nation’s capacity by as much as 150 million tons by 2020 to less than 1 billion tons in an effort to streamline the industry as demand growth moderates.]

The price spiked to $79+ last week, back down to $72 and dropping fast, especially with China merging the steelmakers and curbing output LOL. looks like more pain coming for W.A.

DEAT CAT BOUNCE...

 

Northfield in Adelaide's inner north boomed today, but only for a few seconds

http://www.adelaidenow.com.au/news/...d/news-story/30d4b6031d59b06bf1fb15a95a4ff9c5

 

Meth lab?

 

Mike Keil newsletter:

Western Australia's unemployment rate shot up 0.4% to 6.5% last month. This is the highest unemployment rate in the nation and it is not a good indicator for the real estate market.

I believe if unemployment continues to rise in WA I would expect WA house prices to fall further or at least remain flat over the next 12 months.
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I like Mike. He's a very experienced agent and doesn't BS potential buyers like I have seen some agents.

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right we are entering a boom cycle.... and "pigs will fly"

 

Iron Ore Awakens to Hangover as Stockpiles Surge, Rio Cuts Jobs

More jobs to go at RIO as well.. DCB.

 

read this last night.... no jobs.... no boom in fact I think the market has deteriorated further in the last 12 months.

BTW do investors realise we had a mini boom in 2013/14, that is only almost 2 years ago, bust cycles can go for 7 years and mining cycles longer

 

When the market is safer and the opportunities are greater I am sure the savvy investors will know. I don't understand how Perth is even in contention now by some considering the risks.

 

Perth's pending boom cycle...

 

What could possibly go wrong?

 

Nice dead cat bounce...

Iron ore tops $US80 a tonne amid red-hot steel rally

GST share back to WA on the improve, combined with healthy iron ore and commodity prices and the start of property supply reducing in the sales and rental listings. Good times ahead for WA once employment sentiment returns after the election in March next year!

 

I wouldn't be calling those years a mini boom... it was a merely prices rises in some suburbs on the back of planning changes (increases to the residential zoning, therefore increases the value of those properties by allowing additional subdivision).

 

Disagree. Definitely more of a boom than what you describe. Listings were low and prices were moving nearly everywhere and in nearly all price brackets.

 

This is how it started and it was not just one product that was selling

FHB buyers sub $500K was hot because this was the cut off point for FHB market. Then filtered to higher levels.

Yes, there was lots of rezoning in particular State Housing areas and values increased significantly in areas like Koondoola, Girrawheen etc. But not isolated to just these areas.

We had developers jumping in because there was a demand from FHB and downsizers/baby boomers, therefore development sites anyone were in hot demand everywhere with multiple offers on properties with development sites soaring.

Then we had OTP apartments that were simply flying out the door, I know this because I was looking at the time and very hot market at the time between 2013-14.

Investors were also dabbling in house and land packages in particular north.

Seeing returns of over 30%+ was not unusual at this time from my personal experience, I consider this a boom, when I say mini, I mean time frame as it was only 2 years. Would I compare it to Melb and Syd... yes, but it was dependent on what you purchased and where you purchased.

The only product that I recall at this time that did not move was basically higher end blue chip stuff.

MTR