WA Perth is entering Boom cycle

thanks for the replies, agree with the state govt websites as a source of info but they are confusing to say the least, having transacted in a few states I find that forums are the easiest resource to use !

 

Ignore the recent negative WA GDP data, which doesn't include exports. The west is in for nice comeback, might not happen next year with the state election and all. But 2018 looking good!

The smart property investors have already snapped up all the available property in north perth, wembley and the like. Great value to be had here, although IMO the best buying was 6 months ago. Property owners here are starting to hold on to their properties now and wait for the investors to move in, they like to follow crowds in this state.

ASX to rise, Rio surges alongside iron ore

Roy Hill to recruit mine newcomers

 

I wish you were right

But this makes no sense, If smart investors snap up all the available property in North Perth then will should see property rises today, yet we are seeing the opposite.

One company recruiting miners wont save Perth at this point in time because the economy is stuffed and how can you ignore this.

If people don't have jobs they don't buy houses because they can not service debt that is why there is an oversupply of houses in Perth, uncertainly creates fear, when fear sets in people don't buy they sit on their hands.

 

I have Pilbara Minerals shares. They have started 'Pilgangoora Lithium-Tantalum Project -
The World's Leading Lithium Development Project'

 

I have heard 2018 quoted as well.

 

You will not see price rises yet because all the data is historical and a lot of the sales have been on the lower scale properties skewing the averages down. There is actually not many decent properties on the market at the moment, because local people with stable jobs are not going to sell them in this market. But take these two properties for example, both achieved well over the asking price and had up to 20 groups through each of them... I heard they sold for closer to 900k not 800k.

20 Elizabeth Street North Perth WA 6006 - House for Sale #123957358 - realestate.com.au
172 Daglish Street Wembley WA 6014 - House for Sale #124257254 - realestate.com.au

I too was worried about fear setting in one or two years ago when the commodity and global markets were in freefall, but that has passed now. New mining projects are being discussed, not just roy hill ramping up, but spur lines from rio tinto to new deposits, bhp and chevron announcing 2 billion spending next year. Chevron will also build their tower soon at Elizabeth quay, announcement 2nd half of next year.

Then WA will get gst share back to 70% and it is game on again.

Remember, this state produces half of the countries revenue and even the jobs lost that will not be replaced won't matter, as there will be no new housing supply in 2 years in Perth which will offset this.

A bit late for fear, don't you agree. We are not the US

 

I don't agree. We are in a recession. Go door to door talking to business operators and they are doing it tough. Businesses are closing. This affects consumer sentiment which affects market sentiment. People are worried about their jobs. Worried people don't take risks on housing.

Imagine you fix this at the top. It takes months or years for the benefits of economic activity at the top (mining) to filter down to the rest of the economy. I am confident that the Western Australian economy will turn around and there will be a housing boom again. I also believe there is a lot more pain between now and then.

 

I didn't mean we are not doing it tough. Just that fear created the US housing crash which happened soon after the GFC, however we are almost a year or more past the commodity price low and havn't seen falls like that. Actually the inner to middle ring suburbs are holding up nicely.

I do like your last paragraph though and I believe that's what will happen.

 

So what does this tell me about these houses selling for $900,000? If they sold above sales price then brilliant there is a demand for this product, I don't doubt it, but this does not mean that Perth markets in general will boom because one particular product/area is in demand.

No we are not in US where property markets are booming, we are in Perth quite the opposite.

MTR

 

I doubt todays buyers of housing in Perth care one bit about the US housing crash.

Not sure what you mean by middle ring. Queens Park is ~12km from the CBD. The property market there has collapsed spectacularly. Belmont and Cloverdale are closer and the markets there have also collapsed. I am watching these areas because I think that properties at the right price point will do well in the next boom. Plenty of money to be made, it's just the timing that is tricky.

 

Went to buy furniture in Ossy Park the other day and we noticed 2 large shops had closed down, had been there for years.

Last Saturdays paper company that employed 200 workers down to 70 workers and business owner using his own funds to prop up the business but at this rate he will need to close the doors.

Just have to look at commercial and industrial property, many vacancies this is a clear sign that business' are struggling. In the boom days CIP/Industrial properties were booming, rents were soaring... oh yes the good old days, I wish

 

I have heard of this too. Also heard about Australia Bricks closing a shop. My understanding that is the first time they have ever done this?

Brickworks will close its Malaga plant and take a $47 million hit in its full-year accounts because of the downturn in the WA building industry.

Brickworks to close Malaga plant on WA downturn
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These are not the signals of an economic recovery.

 

I can't believe your quoting a paper business closing down and your a premium member of an online forum, see the irony there? I don't think print media is linked to WA anymore than it is to global online trends killing the industry.

 

I mainly referring to middle to inner north. But those areas should do well once the stadium is open and the burswood precinct is alive.

 

Wow, sadly a sign of the times.

 

"2018" close enough so it sounds positive but far enough away to change their statics and push out to 2019, 2020 and so in got to dangle that carrot to keep people interested

 

I was more interested in the large furniture shops shutting down in Osborne Park. Did a whole furniture chain shut down? Or was that shoes? I don't remember, but it was one or the other.

I agree. The City of Belmont should do really well once the market recovers. I think they are becoming undervalued in this climate.

 

To be honest I have not watched this market, but of course they are desirable pockets and I think affordable for young professionals wanting to live in areas close to city.
I think if buying a primary residence in Perth its a good time, investing is a different kettle of fish.

 

It will be great to review this thread in 2018, if Perth starts to boom I will be opening a bottle of Champaign.... let the good times roll again. I can then start developing in Perth again, would love to do this and be hands on, miss this

MTR

 

I want to try to be ready to start developing in 2018/19 as well. Is that enough time to start a development company?