WA Perth market 2020

Friends who are looking at rural properties in WA's South West said Real Estate Agents spirit's have certainly lifted

 

Agreed with thatbum. Also, subdivision potential and good public schools if it is a house as you are likely to have another family wishing their kids go to a good school (free) when the time comes.

 

Wow check out the rental stats

Perth Market Snapshot For The Week Ending | 21 June 2020 | REIWA


Perth market snapshot for the week ending 21 June 2020
NEW
22 June 2020

Sales activity increased 22.8 per cent in Perth this week, with REIWA members reporting 1,025 transactions.

This increase can be attributed to a 7.7 per cent rise in house sales, 1.8 per cent rise in unit sales and 58.5 per cent rise in vacant land sales over the week.

Properties for sale
There were 10,892 properties for sale in Perth at the end of this week, which is a 2.1 per cent decrease from last week.

A closer look at listing stock levels shows house listings fell by 0.8 per cent, listings for units decreased by one per cent and listings for vacant land decreased by 6.4 per cent.

This week's total figure is 5.8 per cent lower than levels seen four weeks ago, and are 30 per cent lower than levels seen a year ago.

Perth rental market
REIWA members reported there were 4,171 properties for rent in Perth at the end of this week, which is 3.8 per cent less than last week.

This week's rental listings figure is 17 per cent lower than levels seen four weeks ago, and are 44 per cent lower than levels seen a year ago.

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

 

Somebody has put a rocket under the Perth market! Even established houses are moving faster.
44% decrease in rental listings YoY - if that doesn't result in some upward movement for rents by the end of the year nothing will.

 

I truly hope so, its been a long time between drinks

 

Peoples thoughts on what has caused this huge decrease in available rentals? Because its not immigration is it.....

 

alot of couples cracked under the pressure of iso and are looking to seperate maybe

 

One of my friends bought a new home and told her daughter and her boyfriend they weren't going with them. Another friend is downsizing, entering retirement and is giving her boys until the end of the year to move out. Maybe a bit of that going on??

 

Well the undersupply of housing in general and the investor strike specifically has finally hit crunch point.

As for migration, people aren't arriving but they aren't leaving either. Need to wait for the next ABS migration dataset to know for sure what's going on.

 

I can second this.
A couple families I know have broken up into two or three homes with some adult kids leaving the family home.
Working from home and being confined to each others company more than usual has taken a negative toll for some unfortunately.

 

100% agree.

Land sales have all been repriced due to demand from the grants, and at the end, you'll have an asset worth significantly less than you paid for it. Those grants are going direct to the developers.

And the minute the grant is done - land value will diminish.

 

Friends have been the only house on their street for the past 18 months, within 1 week ALL vacant lots now have sold stickers. Guess they better hope the buyers are nice people

 

I think quite a few previously interstate FIFO workers have now planted themselves in WA and taken up some rentals there.

A number of my recent airbnb bookings have been in that category, looking for a long term rental and taking them up after a couple of weeks at mine.

 

My employer has a significant investment in a generic large scale development. We have decided to maintain prices rather than increase. The focus is on moving stock rather than trying to profit from recent government rebates. The other large developers I am speaking to are doing the same. Do you know of specific developments with price increases?

 

If things go well for me in the next 6 months, I'm hoping to get my borrowing power between 700-750 absolute max. Equity is no issue. If I wait beyond August 2021 I might be wasting my time saving if the market grows.

This cuts me out of Leederville and Subiaco etc for houses. I'm trying to work out the magic number. I can still possibly get a small block in Mt Hawthorn, or a significantly larger block in White Gum valley, or Myaree etc. I haven't really looked north east or such.

I guess what is the magic number for square metres vs distance from CBD. Obviously getting a good deal is key here.

 

The one I know for sure is down Busselton way. That’s good to know - much better for FHB with tiny deposits.

 

I've also heard this from an agent, lots of rental applications coming in from recently separated people.

 

Hello all. I used to post on here a few years ago under a different username - have always been browsing but thought I would get back into posting a bit more.

just to share my experiences in the Perth market.

I’ve been involved in selling and buying in the last 18months.

have brought a new property in city of Melville 12months ago - it was a dog and not marketed well as the owners were going through a divorce so I was happy with the price we got it for - I’ve since been doing some renovations to it and although our intention on purchasing it was for a PPOR we wanted to get something that could create some equity, now that the renovation is nearing completion I have been keeping my finger on the pulse with the local market - open homes, speaking with agents etc. I’m noticing a lot more people at home opens (pre and post the whole Covid thing) and well priced properties that can be moved into straight away diffently move quickly.

We have spent 60k on renovations and If I compared our property with recent sale prices of other homes I have seen in the suburb I feel we that 60k we have spent on Reno’s would have generated 150-200k equity, so from a mid 600’s to now mid 800’s. If we were to sell we would have to factor in stamp duties and exit costs etc but i feel the market is not all that bad out there.

we are about to put a house up for sale in the city of cockburn, close to the freeway. We talked about listing it 1 year ago when we sold another property in the same area. The agent we used gave us an appraisal if approx 380ish a year ago and now they are suggesting low 400s
This is just an appraisal but I trust this agent They know there area well. They said there no stock on the market at the moment, Pre Covid things were defiantly on the up and that there is not any stock on the market with Covid so it’s keep prices solid.

maybe with these grants coming into play it might pull some first home buyers out of the market, time will tell. I hope not cause I plan to go to market late July.

that’s just my experiences in the market as of late which I thought I would share. I’m not a serious investor but I do have a keen interest in property.
The property I sold a year ago and the one I’m selling in July was part of a retain and build project we lived in one and rented the other one out. Have used this time in the Perth market to sell both of them off and upgrade our PPOR

 

If you are selling you don' have to the pay stamp duty.

 

I meant that if we were to sell the New PPOR we just brought that we would also have to factor in purchase costs (stamp duty) and sale costs to determine profit made