WA Perth market 2019

Discussion in 'Where to Buy' started by Rex, 2nd Jan, 2019.

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  1. Propin

    Propin Well-Known Member

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    Yes and Commercial Construction down.
     
  2. Omnidragon

    Omnidragon Well-Known Member

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    I think Perth CBD development sites are very cheap.

    But I don’t know the areas well. Am interested in Sr George’s Terrace and Adelaide Terrace... would that be considered the prime sites in Perth?
     
  3. Shogun

    Shogun Well-Known Member

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    St George’s Terrace is very central Perth. Many big companies have offices in one section.
     
  4. Danyool

    Danyool Well-Known Member

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    Anyone following that Brickx (fractional ownership company) has now bought a property in Perth? (Previous properties
    mainly in Sydney and Melbourne)

    It's a 3 bedroom in Campbell Street, Kensington.
    https://www.brickx.com/properties/KGT01/summary

    I don't know much about suburbs/locations, etc. Just wondering people's thoughts on the suburb? inner ring? Seems like a pretty nice house - bit expensive for Perth? Thought they were in a slump over there? ;)

    Although data from Reiwa has Kensington is up 19% in 12 months. Has the area already taken off?

    reiwa.com - Suburb profile for Kensington
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Great suburb. There are some beautiful houses in it well into the $1 millions
    But it's the type of buy where the yield sucks and it only has a CG play and not much else going for it. If I had that much money to spend then I would buy something totally different as an IP but then again I'm more about creating gains in a much shorter term than a buy and hold timeline.
     
  6. Danyool

    Danyool Well-Known Member

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    Cheers. Any thoughts on the quoted 19% gain already. Does that seem likely? Expected?
    Just seems a little out of character for what I've heard on here (and from media reports, etc) about how Perth is in the doldrums. For example have heard things like its getting better, that it was "only" say -2% last quarter, instead of -4%
     
  7. JL1

    JL1 Well-Known Member

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    Congrats mate, and great work with getting that offer through. This is exactly the sort of opportunity that makes Perth such an appealing place at the moment
     
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  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @Danyool That is the danger of reading news articles and looking at Perth as a whole. As you would know from your own Sydney area not all suburbs are doing what the articles in the news are saying.
    If you look at this suburb list it will show the growth for the past 12mth in the median for every suburb. Some suburbs are still tracking backwards over the last 12mths and some are well into positive growth.

    Perth Suburbs Median House Prices and Growth Rates - REIWA

    Note is you scroll through that list you'll see suburbs with more than 100% growth. That is a pretty good clue that statistics aren't everything and whilst they can shine a torch on a suburb to give you a clue to look further you shouldn't buy in simply because a set of statistics put the growth at a certain level - hello Pickering Brook with 113% growth (!!!) reiwa.com - Suburb profile for Pickering Brook

    As to Kensington. It has seen good growth along with a number of other suburbs of similar price point and distance to city. These types of areas in the sub 5km ring generally recover first and we've had a lot of people in Perth upgrade their PPOR in these doldrums and move into these more affluent suburbs whilst they could which has perked up these areas in the past 12mths.
     
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  9. Ketsle

    Ketsle Well-Known Member

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    Some zoning changes or major road/infrastructure developments been announced recently? Can't think of anything else that would drive that sort of growth.
     
  10. JohnPropChat

    JohnPropChat Well-Known Member

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    Kensington is nice suburb but not a whole lot of room left to grow in terms of CG. Plenty of value buying in other suburbs in the $1.2mil range.

    I would have bought a big block in Vic Park for a lot less money and a lot more going on. Wait, I already have :)
     
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  11. Danyool

    Danyool Well-Known Member

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    Pickering Brook? Thanks for the hot tip! ;)

    Yeah, haven't been following specific areas, just the general news for Perth. (Unlikely to get any more loans until we are back to two incomes, or at least 1.5 - hopefully before the whole place takes off!)

    Just after hearing Brickx had bought in Perth and that Kensington was up that much was just a bit of a surprise.
     
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  12. Danyool

    Danyool Well-Known Member

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    Vic Park? Thanks for another hot tip!! Brick team - did you hear that!
     
  13. JL1

    JL1 Well-Known Member

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    REIWA rental listings down to 6500's and falling! I benchmark this against realestate.com.au and the data looks very legitimate.

    For those new to the Perth chat, this is down from over 11,500 not even 2 years ago. nearly 50% less rental stock and only a shade higher than the 5,000 listings of early 2014 when times were good. Supply is still tightening and will be for at least another 12 months based on current development approvals, and probably longer. At this rate, the market will be back to 2013/2014 by end of the year and if new development applications don't pick up soon (and i can't see why they will), 2020 will be a fantastic year to be a landlord in Perth.

    Around the country; NSW rental listings near enough 50% higher than 2 years ago, VIC up on last year and about what they were 2 years ago (trending up though), SA and QLD each down about 20% on 2 years ago. From a rental perspective, definite turn in which states are looking good and Perth in the lead by a long shot.

    Perth Median House Prices, Sales Volume and Rental Market Data - REIWA
     
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  14. Danyool

    Danyool Well-Known Member

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    Not that I know of - but I'm not up on the area at all - just per Westminster's post inner ring recovering first, and people upgrading PPOR into the area.
     
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Jeez Balga is getting cheap. It will never tempt me due to its abundant over supply of 3 x 2 stock but it's interesting how out of favour it has gotten from it's heady days in 2014

    $269k for a 728sqm triplex site 10 Tangmere Way, Balga, WA 6061

    In 2014/15 you would have been paying $470k for a block on that street. Number 9 same size block sold for $470k, 26 Tangmere sold for $470k.

    By comparison Westminster hasn't faired as badly and they literally used to be the same suburb. Westminster is still high 300s or low 400s for a triplex block.
     
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  16. Shogun

    Shogun Well-Known Member

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    Working off other threads on here 200k per unit to build
    End values in the low $300k some look like in the mid to high 200s
    Then even $270k is too much for the land?
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Correct. It doesn't add up even at that low starting price.
     
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  18. JohnPropChat

    JohnPropChat Well-Known Member

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    Balga is North of Reid Hwy, I would say they are similar but Westminister is slightly better.
     
  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Thank god for Reid Hwy. I still own my first triplex I built in Westminster (hence my user name) and I couldn't afford Nollamara so had to go down the rung one level to Westminster but stayed above Balga. Really thanking my stars now!
     
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  20. Rex

    Rex Well-Known Member

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    Becoming like central Mandurah development blocks - even if the land was free the 6 unit development probably still wouldn't stack up.
     
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