WA Perth Market 2017

{Note from mods - this thread continued from here: WA - Perth Market 2016}

 

Housing market builds on year-end momentum


Perth’s housing market continued to show life to round out 2016, with median house prices posting their first quarterly increase since April last year, according to property analytics firm CoreLogic.
CoreLogic today reported that Perth’s median house price rose 1.4 per cent in December to $425,000, contributing to a quarterly gain of 2.8 per cent.
That was the best quarterly result since April 2015, when CoreLogic reported a 0.5 per cent rise in Perth’s median dwelling price.
The monthly performance followed modest rises in median prices in November and October, of 0.6 per cent and 0.8 per cent, respectively.
CoreLogic head of research Tim Lawless said the data indicated the Perth market was showing signs of moving through its low point.
Nevertheless, the solid end to the year could not reverse a downward trend in year-on-year values; Perth house prices were down 4.3 per cent compared to the same time last year, the only capital in Australia to post a yearly decline.
Across the nation, capital city medians rose 1.4 per cent in December, for a 10.9 per cent year on year gain, the highest growth rate for a calendar year since 2009.
Sydney was the standout performer, with dwelling prices up 15.5 per cent in 2015, while Melbourne house prices were up 13.7 per cent over the year.

 

Still think that's the wrong way to go about things. Subdivideable block with rear access can be had in Mosman park with a perfectly liveable 3 bedder for $700. Much better but for what is st the moment only an extra $100 to $150k

 

Way above my pay grade!

 

My serious response to this is that there will be no PPoR project. I am saving all my borrowing capacity for investing. PPoR... maybe one day

 

major perth builder builton in administration

Builton collapse leaves 110 WA home projects unfinished

Homeowners, creditors and staff could be left out of pocket after building company Builton Group collapsed owing about $16 million and leaving about 110 residential projects unfinished.

Administrators from Cor Cordis, Dino Travaglini and Jeremy Nipps, delivered the distressing news to the media this morning, saying it was clear that Builton and its subsidiaries Platinum Homes, Aspireon Homes and Multi Living by Design, were unable to continue to trade.

Mr Travaglini said Builton had about 350 unsecured creditors, mostly sub-contractors, suppliers and other creditors, who were owed about $16 million.


“We are in the process of reviewing all existing housing contracts to see how we can best assist the owners in the completion of their houses,” he said.

“I recognise that this is a distressing time for house owners and creditors, and we are working as quickly as possible to clarify their position.”

Administrators said Builton ceased trading last week, with about 38 employees terminated.

“As we were only appointed yesterday, we are still in the process of investigating the companies’ financial positions,” Mr Travaglini said.

Administrators said they would be investigating the conduct of Builton’s directors in the lead up to the collapse, in accordance with company law.

Directors can be held liable if it is deemed the company was trading whilst insolvent.


Builton Group’s offices in Burswood.
The administrators said they had set up an information website for creditors and home owners affected by the collapse.

A first creditors meeting would be called on or about February 3 followed by a second creditors meeting later next month which would decide on the future of the company.

The administrators said homeowners’ liability would be dependent on the terms of their insurance policies, but Builton would no longer cover their houses for construction insurance. Affected homeowners are urged to contact their insurers to determine where they stand and what they need to do.

Administrators said they believed most homeowners had cover with QBE Insurance for home building insurance.

An information meeting for affected homeowners will be held on January 31.

Meanwhile, the Building Commission has asked Builton to “show cause” or explain why it should not have conditions imposed on its builder’s registration.

The builder’s collapse comes in the wake of the recent foundering of Diploma Group and Collier Homes and adds to a litany of WA home builder failures.

Building Commissioner Peter Gow said contractors were obliged to give written notice if they were unable to meet their financial obligations.

“(We have) asked the building contractor to show cause as to why conditions should not be imposed,” Mr Gow said.

Last week, Builton listed current projects at 12 sites around Perth.

Yesterday, these, with a list of the senior executives including managing director Troy Felt, had been removed from its website.

Builton Group projects are in Tapping, Mindarie Marina, Success, High Wycombe, Greenwich on Bulwer, Wandi Apartments, Spearwood, Vue Apartments in Maylands, Quattro on Burswood, Riverview Estate, Mandurah Junction and Orchard by the Sea. It is believed Builton has a number of unpaid creditors.

WestBusiness last week reported that one of them, KJ Carpentry (WA), had gone into liquidation over $71,000 it said it was owed by Builton Group.

The Building Commission on Friday issued a warning about Builtoncorp, urging caution in making payments to it.

As well as its other Builton trading arms, Builtoncorp is linked to Multi-Living by Design, Investwise, Platinum Homes, Aspireon Homes and MetroStart Homes. Mr Felt last week did not return calls and yesterday Builtoncorp’s phones went unanswered.

An anonymous source said staff were told not to come to work yesterday because Builton Group companies were to be placed under administration.

Builton companies offer house-and-land packages, turnkey strata developments, inner-city apartments, mixed-use developments and commercial buildings.

 

Not good @MTR. I have seen this before and it sent other builders broke too. My BIL was building in East Perth. Builder went bust and work got allocated to other building companies. Some took on too many of the jobs and didn't manage the cashflow so it sent them broke too. My BIL's new builder was one that went broke. He gave up and finished the build himself. It was a duplex pair. Out of interest I looked up the sales history. He sold for $387,500 in Oct 2011. Most recent sale $1,100,000 in May 2013

 

Hi @lynchy - Sub dividable blocks in Mosman Park with liveable houses for ~$700k? Are you able to share any evidence of this? (Can't find any - but there seems to be properties fitting the description with no price listed).

Cheers in advance.

T

 

Would be a good deal I think, I mean if you could find one. I don't mean there are lots of them around

 

Looks like there are a couple of fibro's on R40s that have gone in that range. Will be watching this area more closely - could be a nice deal for a PPOR.

 

http://wvw.momentumwealth.com.au/e/148271/MW-MarketUpdate-Summer2017-pdf/2hxzq6/40153743

Market update!

 

Perth housing market shows signs of life

the worst could soon be over for Perth’s troubled housing market, with new data hinting at a bottoming of the downturn while warning that any recovery will likely be slow.
Perth dwelling values improved by 0.2 per cent last month, according to the latest CoreLogic RP Data report, with the Western Australian capital’s median now sitting at $480,000.
Perth home prices grew by 2.1 per cent for the three months to January. However, they are still down 3.2 per cent on a year-by-year basis.
Perth’s January result was slightly below the national increase of 0.7 per cent across the combined capital cities, with Darwin the only city to record a fall for the month.
But all capital cities have reported improved home values over the latest quarter.
“For Perth and Darwin, the rise in dwelling values over the rolling quarter may hint at a bottoming of the downturn, evident since 2014,” CoreLogic head of research Tim Lawless said.
“Since dwelling values peaked in these markets they have reduced by a cumulative 7.7 per cent in Perth and 7.5 per cent in Darwin through to January 2017.
“Buyers still have a great deal of leverage in these markets, with listing numbers remaining high, long selling times and high rates of discounting.
“However, in another indication that conditions may be moving through the bottom of the cycle, transaction volumes moved higher across both markets prior to the seasonal downturn in December and January, whilst the average selling time reduced from previously higher levels.”
Mr Lawless said with economic and demographic conditions remaining weak in the Perth and Darwin markets, a recovery in dwelling values was likely to be a slow process.

 

Commodities Bust Crushes Incomes, House Prices, & Rents in Western Australia

Commodities Bust Crushes Incomes, House Prices, & Rents in Western Australia

 

my rent went from 350 to 275 ,and i bet after 1 year still falling,and also i drove to my local bottle shop here in Balga and counted 20 new villas ready for a new owner or tenant
some people must be losing money here

 

Balga was a pretty classic nothing to boom to bust cycle. It was more than 10 years ago that you could buy super cheap blocks, cut them into triplex and make 30%. People got in really late (stupid prices as little as 3 years ago).
The zoning creates an explosion of triplex villas and supply quickly caught up to demand. End prices didn't increase, while development size blocks doubled (or more) in price.
Now end values may even have gone backwards. And people are struggling to even recant them out at neutral.
I can help but feel Belmont and surrounds will be in a similar position soon, if not already.

Just my 2 beers worth.

Blacky

 

@Blacky Belmont LGA definitely suffering from a similar but different problem. The problem is is a drastic oversupply of apartments. The thing is that people are still building apartments. There is a 3 storey apartment block being built now down the road from Belmont Forum. It's crazy! I have no idea who is going to buy them. What is in demand but short supply is 4x2 family homes. Pretty much no one is building 4x2's.

 

I remember when you could buy very small villas here for 425 k,but now i think only cost now 320 k now ,pretty bad for people here ,if they bought in the boom times,but i must say people still buying like crazy these villas here,too small,and all cloned ,in the bedrooms so small,hardly fits a bed in there

 

Thoughts?

Second international airport on the cards

Might be similar to Sydney's 2nd airport which has involved years and years of discussion but no actual progress.

 

Trend of the last 10months or so of Perth (Greater region) from realestate.com

Top graph is the [total properties advertised] vs [excluding under offer] and bottom graph shows the number under offer (difference between the above two), RE.com isn't that great for filtering the under offer so it's good as a general guide only.

 

When I bought my yokine site in about 08 I was encouraged by several people to develop in balga.
However I felt the

wtf is the point of a second airport when we just spent godvinly knows how much in the airport redevelopment which isn't even finished yet?
And still there's only 5 gates.

Another airport is a joke and unnecessary.

Blacky