WA Perth market 2019

Thx.....This product been hammered, what about rents????

 

I would guess around $250 plus

 

Ok so still mot cashflowing

 

My bad, yes a typo on my part. Free-standing. I would however bundle larger townhouses into the same group - essentially any property that a family could comfortably live in without having to make lifestyle adjustments (e.g. could still have a dog, park a few cars out front, etc).

 

They're getting fantastic gross returns right now. Can pick up a 1 bedder in the area for $120k and rent for $200/week (8.5-9%!). They get hammered on body corporate fees and rates though so net is more in the realm of 5% before interest. Not for everyone given the low quality of product, but i think there is definitely a strategy there.

The one bedders were going for $200k back in the day, so picking them up at 120k, throw in a 5% net yield that services debt, wait for $180k to come back and you have a solid 50% capital growth on an asset that services itself.

 

Cafe's in Bassendean seem to be ticking along nicely. A few alternative and creative shops have shut while two cafe's have expanded in past few months.

 

We're in the same boat albeit im not looking south. $550k wont get you west of the freeway north though unfortunately unless its a new build on a subdivided block like <400sqm. Theres some good buys in that range one suburb east of the freeway mind you. Thats where i've targeted (FHB)

 

I think NOR is definitely more desirable for most but I do love Freo so that pulls me to look SOR plus you get the bigger land component. Yes everything NOR is on a half block in that price bracket unfortunately mind you not all new builds. You can get cute original cottages on half blocks for <550k.

 

Im going to be lazy and ask you to post a link to any of these units you are referring to

 

What’s interesting with these units in Yokine/Tuart Hill/ OP is the diversity of product.

Bear with me. They swing wildly. You see them advertised online and think it’s the same kit. But on inspection, not so.

I am not talking just about finish. I’m talking about land area, privacy etc. There can be a world of difference between 3x1 villas depending on whether they are at the front of the block or the back, privacy, orientation etc.

Not sure how this translates into price but it ought to.

 

It will same as size of unit, condition
Yokine also has so much oversupply, not an expect but thats probably why they have bern hammered

 

I think they are being hammered because the people buying them were investors.

No investors = price falls.

In another city, most cities, the fact that they are close to the city would mean something to OOs.

Not in Perth. They prefer more house further out. And why not? It’s not like there is any traffic in the most isolated city in the world.

 

Is this written in "irony" font?

Our freeways suck

 

17E/159 Hector Street, Osborne Park, WA 6017

 

Yeah not sure how SQM arrives at its numbers or what it considers the geographic boundaries of Perth market, but you'd assume similar methodologies across the various capital city markets. The raw numbers aren't particularly useful but they are helpful for comparison YoY and between markets. The Peel region wouldn't add 50% to Perth's listing numbers, so either way we're not looking great.

Perth's total listing numbers are still unhealthily high, sure not really getting worse now, but certainly not showing real improvement yet.

The accepted wisdom seems to be that the market indicators required to stop the Perth downturn will be A) below average vacancy rates, B) increasing rents, and C) falling total sales listings. I think we're still at B, waiting to see strength in rents come through clearly. It's proving to be a long hard grind.

 

Wow

 

A few design tips for you to get that New York apartment feel. Washing machine and hot water system in dining room. Nice

 

These came up in advertising.
Good product and price for Yokine or Built it someone will buy it type developing?
from 1.15 million
A, B & C/122 Moulden Avenue, Yokine, WA 6060

 

I have a mate in Perth who says on the ground there is more and more talk from renters of buying a PPOR due to the rent price as going up. May be another few years though but I do anticipate an increase in sales in a 3-4 year window.

 

To me, they are dreaming. It's nice but the days of Yokine getting over $1m even for nice side by side duplex product are few and far between. This being triplex and smaller land will struggle I predict.