WA Perth market 2018

Discussion in 'Where to Buy' started by Prash, 9th Jan, 2018.

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  1. Ald

    Ald Well-Known Member

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    This is a big game changer for PERTH the number of jobs this will generate and spin off companies is huge. I expect PERTH to be in boom in 2021
     
  2. thatbum

    thatbum Well-Known Member

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    I respectfully disagree.
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I disrespectfully disagree too. It's good but unless more major players come on it's a fragile industry that can be easily taken down by alternatives such as Graphene or Vanadium.

    Lithium might be at it's peak usage in terms of world wide needs but also it's technology which has no answer at the moment for increasing the life of it's batteries. It was cutting edge 25 years ago but is no longer on the cutting edge of technology who's needs are moving fast.

    In 5 years time we'll still be using Lithium batteries just like we still used non lithium batteries for a long time but it's day as the darling of the battery world is not going to be forever.
     
  4. Scaphella

    Scaphella Well-Known Member

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    D1EC6E4B-3CDC-428D-AA1B-9EA2C8ED6B88.jpeg
    23/05/2018

    Perth rental market
    REIWA members reported there were 8,324 available rentals in Perth over the week.

    This is two per cent lower than four weeks ago and 23 per cent lower than the same time last year.

    Listings for sale
    There were 14,896 properties for sale in Perth this week.

    Listings for houses and units were stable, whilst listings for vacant land increased four per cent.

    This week’s total listings figure is on par with levels seen four weeks ago and one per cent lower than the same time last year.
     
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  5. Sasim

    Sasim Well-Known Member

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    @Scaphella you inspired my curiosity to have a look back further...

    May 2016
    Property Sales: 680
    Properties listed for sale: 14 995
    Properties listed for rent: 10 259

    Median rent: $395/ week
    Vacancy Rate 5.6%

    Will continue to wait wait wait for those median rents to rise again...somehow don't think they will rise as fast as they fell :confused:
     
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  6. euro73

    euro73 Well-Known Member Business Member

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    Perth will likely be a slow burner...but it does represent good buying right now... and I would still argue that money will flow there increasingly over the next year or two. Not in Sydney or Melbourne "boom" volumes... but in sufficient volumes to start a steady recovery...

    And of course, if the Lithium and Cobalt thing starts to ramp up over the coming years, and we start seeing thousands of new jobs ,Perth could really do very well ... Unlike the previous WA mining boom, a lot of the Lithium and Cobalt jobs are likely going to be in Perth. Its early days yet, but it appears it has serious , serious potential. Here in Australia we tend to under appreciate just how big the electric car thing is going to be, because our pollies have so far chosen to do nothing to incentivise the transition. Not so elsewhere though...in very sizeable markets, the early days of transition are well underway. . It's potential is absolutely huge.

    For example.....

    China has moved to ban combustible engines by 2040, but are already well advanced in the sale of electric vehicles...

    The UK has announced plans to ban the production of petrol and diesel engines by 2040

    Scotland has announced plans to ban the production of petrol and diesel engines by 2032

    France has announced plans to ban the production of petrol and diesel engines by 2040

    Norway - already the woerlds largest users of electric vehicles, plans to phase out petrol and diesel by 2025

    Holland - 2030

    Germany - 2030 ( my AMG might become a collectors item :) )

    India - 2030

    In the USA, California and 7 other states have introduced bills to phase out combustible engines by 2030, with more to follow.

    Austria, Denmark, Ireland, Japan, Portugal, Korea and Spain- all planning legislation to transition to electric by mid 2030's

    When you look at the size of these markets, it means that current levels of Lithium and Cobalt mining just arent going to be able to cope. They need to increase supply by something approaching 300-400 % in order to meet the anticipated demand for Electric Vehicle batteries by the mid 2020's, and another 300-400 % to meet the demand of 2030. WA has massive deposits of all the minerals required to manufacture the types of batteries used in these vehicles... so it's extremely well placed to be the worlds "Lithium Valley"

    But it's not just Governments that are starting to get serious about petrol and diesel engines being phased out in favour of electric engines; the car industry is also starting to get serious...

    Volvo will introduce electric engines by 2019 - all new models will be electric or hybrid from 2019.

    BMW , Toyota, Renault, Nissan, Mazda, VW, Audi, GM, Seat, Skoda, Damiler ( which owns Mercedes) - all getting serious about electric engine R&D as well - Factbox - Automakers get serious about electric cars

    Even Harley Davidson are going electric!

    Harley-Davidson invests in Alta Motors, a California electric bike company

    Harley-Davidson’s first production electric motorcycle will debut in 2019


    So it seems inevitable this is going to start ramping up considerably in the coming few years , and Perth is very well placed to benefit from it. Might take a good few years, but its difficult to deny the potential is huge ... Chile is a competitor who have a lot of Lithium deposits as well, so there's always the chance WA/Perth may miss out altogether - but given our political stability, highly skilled engineering workforce and proven track record in getting things out of the ground , I imagine it should secure a very decent piece of the pie.

    Anyway, food for thought when considering Perth's potential .....


    Tesla meets with Premier to discuss options in 'Lithium Valley' Perth

    Elon Musk’s Tesla moves in on WA lithium with ‘strictly confidential’ Kidman offtake deal | The West Australian
     
    Last edited: 24th May, 2018
  7. icic

    icic Well-Known Member

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    thanks @euro73, the info you have is well researched and summarized. Hope Perth will have a more sustainable mining boom this time.
     
  8. sanj

    sanj Well-Known Member Premium Member

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    I respectfully disagree with you daring to question the mayor of south karrinyup, who the hell do you think you are???

    He sits on the throne of the best suburb to live in in all of Perth and one of the best in the country, bow down.
     
  9. Redwing

    Redwing Well-Known Member

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    A few friends in the industry reporting mining work starting to pick up
     
  10. thatbum

    thatbum Well-Known Member

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    I've heard a lot of the same, but I just think its going to be some time before it translates into increased prices.

    Last time this happened it took a while to even translate into increased rents, which then took some time to translate into the increase in prices.
     
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  11. theperthurbanist

    theperthurbanist Well-Known Member

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    Hi @sanj, this is going back a while but what were the 'Cannington improvements' you were referring to in the above post? I was wondering about Parkwood/Lynwood/Willetton as target investment/development suburbs over the weekend but I don't know the area that well.
     
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Maybe all the work around Carousel?
     
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  13. Luke_melb

    Luke_melb Member

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    I am looking at Possible investment in Perth & will be recruiting a local buyers agent to assist. Can anyone advice on the following suburbs, are any of these highly unlikely or unlikely to see decent capital gains in the future 5-10 years? Manning, Wilson, Cannington, Rivervale, St James, Victoria Park.
     
  14. thatbum

    thatbum Well-Known Member

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    Piece of string question, and it really turns more on the type of property more than the suburb itself...

    But if all other things had to be equal (and they aren't), then I'd probably go Vic Park, Rivervale and Manning, in that order. The other 3 fall a fair bit behind in my opinion.
     
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  15. Ald

    Ald Well-Known Member

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    Thank you Sanj for getting the plebs in order.

    I am selling everything I own in Property and moving my money into a foreign currency. Changing my plans. The aussie state government and fed goverment ($550 billion ) and Aussie public are carrying too much debt. I suspect the Aussie will be between 60 cents and 40 cents to aud soon. The last time John Howard had 96 billion debt he sold everything from Telstra to Quantas to pay it down. I don't know how Turnbull or shorten are going to pay off that debt and neither cares to be honest.

    The mayor of Karrinyup is considering investing in cheaper housing in Europe.

    I will probably sell all my Perth investments in the summer and I have nothing in NSW now and nothing in Queensland either.

    I see it's time to pull up anchors and preserve capital.
     
  16. Ald

    Ald Well-Known Member

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    I think that WA is going to thrive from the recharge battery industry.

    Devices are getting to be more efficient, solar power is more efficient, optimised lithium based batteries might be enough for decades.
    Recycling of lithium could be the cheapest way of increasing cheap life and prices of batteries is dropping. At some point it could become so cheap to keep lithium technology that it becomes pointless to invest in something else for slight improvement.
     
  17. DAZ79

    DAZ79 Well-Known Member

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    I have been looking around 6060 and 6007. Suburbs like Tuart Hill, Joondanna, Yokine and Mt Hawthorn etc


    What I am seeing is this:


    Significant price falls. 3 x1s and 3x2s asking prices down as much as 25% from 2015/16.

    That’s pretty remarkable for suburbs close to the city and presents bargains galore.

    On the other hand, rental vacancy rate is falling pretty sharply. Should promote rent stability if not some growth.

    Anyone else watching these areas? Thoughts?
     
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  18. thatbum

    thatbum Well-Known Member

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    Well that sort of thing isn't unusual around most of Perth compared to 2014/2015. I think you need to ask yourself why those particular areas are any "better" than any others.
     
  19. Ald

    Ald Well-Known Member

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    Most people who bought in Perth from 2007 onwards and who put 20% deposit down or less and did their monthly payments have made no money in Perth. If they sold today they would be making a loss as interest has been charged and paid for. The property prices are back at 2008 or 2007 levels.

    But hey property prices double every 7 to ten years.
     
  20. Perthguy

    Perthguy Well-Known Member

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    Hilarious! Replace "most" with "some" and I would agree with you. Claiming "most" is ridiculous at best.
     
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