WA Perth market 2020

As someone who made money from Armadale in the last boom, I say it is still too early to jump into the low end market and even if you did, must proceed with extreme caution. You really have to know the area well or face the music.

South-east, my pick for value-buying on a budget is Huntingdale.

 

Logan is huge, and our street is beautiful and its seldom that any one ever leaves, and you wouldn't buy on here for more than double that. I feel offended when people compare a huge area of Logan just because some of the inner suburbs are less wealthy. One of our neighbours paid well into the 700's fourteen years ago to get one here and she says she won't leave as she loves it and it took a long time to find it.

 

Perth Market Stabilises In December | REIWA

Perth market stabilises in December
NEW
02 January 2020


After solid gains in November, reiwa.com data reveals 64 per cent of Perth suburbs with statistically significant activity*, saw stable or increased median house price movement during December.

REIWA President Damian Collins said CoreLogic’s latest home value index supports this which has also stabilised in December, holding onto gains seen in November.

“In the latter end of 2019, reiwa.com data found that the luxury market continued to perform well across both sales and rentals, and we are now starting to see the flow on effects with suburbs in the lower end of the market also picking up,” Mr Collins said.

Median sale price
December reiwa.com data shows five of the 10 top performing suburbs according to median sale price growth had a median below Greater Perth’s median of $479,000.

“Applecross saw the largest growth of 3.2 per cent, which was closely followed by Rockingham (2.1 per cent), North Perth (1.5 per cent), Butler (1.4 per cent) and High Wycombe (1.3 per cent).

“It is pleasing to see that the higher end of the market still continues to do well and the lower end begins to see improvements. Trade-up buyers are most active and currently account for 53 per cent** of demand in line with earlier improvements seen at the higher end. That said, improvements at the lower end could attract first home buyers and investor back into the market which could change this”.

Sales listings
There were fewer properties for sale in December than November, with reiwa.com data showing listings for sale declined 12 per cent during the month.

“With listings declining and the average days on market lowering to 67 for dwellings, current stock is being absorbed quickly, therefore buyers are advised to keep this in mind when looking for their next property,” Mr Collins said.

Perth rental market
Listing stock in Perth’s rental market continued to plummet in December, declining a further seven per cent to 5,616.

“In addition to the decline we’ve seen during the month, listings are now a significant 18 per cent lower than they were a year ago,” Mr Collins said.

“This reduction in listings, combined with stable rent prices and healthy leasing volumes, has pushed the Perth vacancy rate to 2.3 per cent, the lowest level Perth has experienced since February 2019.”

Median weekly rent
Perth’s overall median rent price remained at $350 per week in December 2019.

“Traditionally the first few months of the year are a busy time for leasing activity. If the rental market remains on its current upward trajectory, we should see rent prices increase throughout the year” Mr Collins said.

 

Similar vein as you I guess, but I reckon old homes on big blocks in Thornlie and Langford too.

 

I like some options in Thornlie as well. This one comes to mind:

12 Caldecott Street, Thornlie, WA 6108

 

I'd be avoiding these areas, simply for the social issues and that there are better options if you spend a little bit more money. I'd be interested to know A) what's your budget,
and B) What are you wanting out of a suburb? Proximity to natural things like beaches, river, parks? Social factors like crime rate and safety? Good schools? Shops and amenities? Commuting access to CBD? Potential for future capital gains?

Heaps of good affordable options on Perth right now, we could make some good recommendations with some more guidance.

 

Homely has reviews

Armadale and Forrest Lake's a bit away from the airport, but not massively so

 

Forrest lakes? Possibly meant Forrest field near air port

 

Kelmscott east of Albany hwy is actually quite nice, especially heading up the hill towards Roleystone - beautiful.
West of the hwy though and towards Seville Grove...different story imho.

 

Thornlie used be my pick down there but value buying seems better in Huntingdale at the moment. A 3x1 on 600m2+ block for low 200's or a 4x2 family home on a similar sized block for mid-$300s. Yields are also higher in Huntingdale with a higher PPOR population. Thornlie has a lot more investor activity.

 

Kelmscott east of Albany Hwy might as well be a different suburb, they should really rename it so it doesn't get washed in the stigma of Kelmscott branding.

People think Armadale is bad but Camillo is something else entirely. It used to be called Kelmscott, got kicked out and renamed as Westfield - still no joy so renamed to Camillo - nope, still the same old **** hole.

 

agreed which is why I mentioned it too. I lived there as a kid and it’s quite pretty. A property chat member actually owns the house I lived in as a kid. Yup Perth is one degree of separation!!

 

hey thanks everybody for your suggestions, wife and I are just sorting things out will be moving over in 3 months. We’re going to get a rental around Thornlie/huntingdale for 6 months while we have a look around, family are also suggesting that area and from having a look seems to be decently central with a costco coming and other things while being dirt cheap compared what we’re used to on the Gc. Probably look for around 350k as it’s just much better stock than the 200 stuff I’ve seen, I don’t mind a mortgage of 120kish

 

Welcome to Perth, bring cash

 

looking back to 2018

How the Perth suburb of Baldivis became Australia’s bankrupt capital

EVERY hour Melissa’s Baldivis home spends on the property market drags her closer to financial ruin.

Despite dropping the asking price $30,000 below the $400,000 she paid seven years ago, the house has failed to attract a single offer for eight months.

If it does not sell in the next three weeks, the 39-year-old mother of three will be forced to declare bankruptcy, writing off both the Baldivis residence and an investment property in Armadale.

“We bought at the peak of the market with a $100,000 deposit after selling our previous home in Armadale,” Melissa said.


“We wanted a sea change for the kids and to be closer to the beach and used a chunk of that deposit money for renovations.

“Then 15-months ago I separated from my husband, moved out and found myself paying two lots of mortgages and rent. It’s amazing how quickly it can turn to s---.”

Chalk up one more shattered dream in Australia’s capital of fiscal heartbreak.

 

I know nothing about Perth but that looks ripe for a renovation!

 

That's great. I think renting will help you be able to pick an area a lot better when you're on the ground and can easily check out places. I think that small mortgage which you can agressively pay down will get you a lot better house than the $200k stuff.

 

They're at it again - expert predictions for the market over the coming year. Lots of "could", "should", "may" etc, of course. Perth property market outlook: experts predictions for 2020

I love Paul Blackburne's recommendation; by an OTP apartment now, so you don't have to sell your current house for a couple of years. By which time the market should have recovered! What could possibly go wrong...

 

I’m helping a family member renovate something similar currently. Just a PPOR for them but saving a lot in not paying for labour.
There are many many old houses that could be renovated for increased rental yield. I am starting renovations on the exterior of my place this year to build equity as part of a plan to buy in the 15km-20km ring in 2-3 years time to generate income. Not a lot of buy, renovate, sell options to make money without subdivision opportunities.

 

Not yet anyway!