WA Perth market 2020

https://www.watoday.com.au/national...-those-desperate-to-sell-20200407-p54hxd.html

The coronavirus pandemic has put property at the back of mind for much of the population, leaving the market full of bargain hunters and those desperate to sell, a leading West Australian property analyst suggests.

Property valuer and forecaster Gavin Hegney said the pandemic had created never-before-seen conditions in WA and with bigger fish to fry, real estate had dropped down the priority list for many households.

“Generally speaking I don’t think it is on their minds as much as what it was three or six months ago,” he said.

“In the Perth market, if it’s not on peoples’ minds then sales activity tends to drop away and we are already seeing evidence of that.”

 

Bargain hunters are always there, it's the desperate sellers that'll tip the equation. Outer burbs were suffering and will continue to do so for the time being.

In inner ring, I haven't seen a spike in "good deals" yet but that can change if there is panic selling. With bank deferrals, ultra low rates and access to large stimulus I would be surprised if people are forced to sell, if they weren't already in that situation pre-covid.

 

I haven't seen a spike in deals but there have been a few that have popped up these past 2 weeks which I haven't seen since about October last year

Eg 3 Fifth Avenue Mount Lawley I believe is cheap but someone commented it was not a bargain.
I also like 15a Longroyd St Mount Lawley as its very competitively priced.

 

We have a property for sale in a blue chip suburb. Plenty of interest in the first couple of weeks then as soon as coronavirus got serious all the potential buyers said they wanted to wait and see what happens with corona etc before committing to something like this.
So, currently deciding whether to wait it out or try to rent it out. It is ready for sale (new carpets etc) and we are concerned about the effect on the condition of the place tenants might have, plus we’ve paid for marketing, plus there’d be a leasing fee, plus if a buyer does come along we’d be kicking ourselves if it’s tenanted and all their stuff is in there. On the other hand, how long will this situation last......

 

I would keep it on the market for at least another month

There is some positive news coming in drips regarding the containment of corona, this may pacify some ??

 

Target demographic is OO/FHBs or caters to Investors as well? If the former, I wouldn't rent it out but if cashflow is an issue that's another matter.

I agree with @MTR give it some more time before pulling the plug and trying again later.

 

There is positive news re flattening the curve. Their concerns would obviously also relate to the possible follow-on effects on the economy/housing market.

Caters for investors as well.
Cashflow is not an issue as such (as long as my husband and I both have jobs) but it certainly wasn’t part of the plan to be paying mortgage without a tenant and there is definitely an opportunity cost.

 

If I am buying then I would prefer mine to come with tenants than me putting it up for rent after purchase. A 6 month lease perhaps?

 

Perth Market Snapshot For The Week Ending | 12 April 2020 | REIWA


Perth market snapshot for the week ending 12 April 2020
NEW
14 April 2020

Sales activity decreased five per cent in Perth this week, with REIWA members reporting 264 transactions.

This decrease can be attributed to a 0.5 per cent fall in house sales, 5.4 per cent increase in unit sales and 41.5 per cent decrease in vacant land sales over the week.

Properties for sale
There were 12,273 properties for sale in Perth at the end of this week, which is 0.7 per cent lower than last week.

A closer look at listing stock levels shows house listings decreased by one per cent, listings for units decreased by 0.3 per cent and vacant land listings decreased by 0.3 per cent.

This week's total figure for properties listed for sale is three per cent lower than levels seen four weeks ago and is 28 per cent lower than levels seen a year ago.

Perth rental market
REIWA members reported there were 5,641 properties for rent in Perth at the end of this week, which is 3.8 per cent more than last week.

This week's rental listings figure is three per cent lower than levels seen four weeks ago and is 19 per cent lower than levels seen a year ago.

Leasing activity decreased 19.9 per cent in Perth this week, with REIWA members reporting 659 properties leased.

View our Perth Market Snapshot graph for a detailed breakdown of the past week.

 

This is now under offer. It'll do well.

 

Property is sold. Contacted the agent but was too late..

 

Maybe jump on my recommendations a bit early

 

Property Council now reckon the supply side is stuffed.

https://www.watoday.com.au/national...ted-wa-property-recovery-20200415-p54k6k.html

Keystart ****ed too.

Accelerating towards undersupply mitigated only by the demand side shock of all those construction jobs evaporating.

 

Confidence is low but in terms of revenue and job losses, construction is doing pretty will compared to other parts of the economy. Contractors can and are operating albeit with a reduced order book.

There will certainly be more traditional infrastructure spending stimulus in a few months time assuming WA continues to track well on covid, which will help this sector also.

It's the retail, hospitality and especially tourism sectors that will take a long time to recover as restrictions are eased. Many people will not keep their old jobs when jobkeeper payments end. But yes I agree unemployment is going to be a handbrake on demand for Perth property for some time, in addition to a lack of population growth due to no immigration. But I see us better positioned than the eastern capitals.

 

Just browsing Mandurah

https://www.realestate.com.au/property-unit-wa-mandurah-130760490



You'd like the colour's here @Depreciator

https://www.realestate.com.au/property-unit-wa-mandurah-133111294

 

Can buy in a suburb next to the swan river for that albeit much older complexes.

 

I think its far too early to say how the construction industry is doing seeing as we have no post covid construction data or unemployment data yet.

My assumption is that demand has nosedived just like it has for everything else barring groceries and the official data sets will bear this out.

Of course, some projects will be at completion phase so the real damage will be in approvals and maybe even in starts. Lets see.

 

If I can get this for low to mid 100's - https://www.realestate.com.au/property-apartment-wa-victoria+park-132954610

Then the one in Mandurah is worth $50k

 

What is the approximately the rental income for this property? The outgoing seems to be high. What is the reserve fund means?

Outgoings:
* Council Rates: $1402.76 (FY 2019/2020)
* Water Rates: $512.56 (1/7/2019 - 29/2/2020)
* Strata Levies: app. $631.58/q
* Reserve Fund: app. $161.28/q

 

The sales history on those units - "oof". Sales for $150K+ circa 2011, now units are advertised from $88K with renovated kitchen.
You'd hope she was a real cash cow to take the sting out of that.

Who in their right mind would touch stock like this...