WA Perth market 2020

Savage change in Australia’s housing market

 

Western Australia’s peak real estate industry body has slammed a decision by the WA Government to extend the coronavirus eviction moratorium for residential properties, warning of a looming rental crisis with vacancy rates already at a record low.

Last week, Commerce Minister John Quigley announced that the freeze on rent increases and some evictions would stay in place for another six months until 28 March, 2021.

Fears Extension To WA Eviction Moratorium Will Cause “Rental Crisis”

 

Market is moving and developement sites in good areas are selling fast.
https://m.realestate.com.au/property-house-wa-joondanna-134407510
This site in Joondanna sold in 3 days without house open. They received 4-5 offers. I did put a reasonable offer but was beaten and there was no counter offer opportunity.

 

Care to share how much it was sold for?

 

I offered $930k which was rejected. I asked agent if I raise my bid but was told it's done and dusted and he was not ready to share the sold price.

 

The $1000/m2 in postcode 6060 are back!

 

Honestly I don`t understand these agents` attitude, especially with genuine buyers, definitely not a good way to establish a relationship!

 

With a population of two million people living along a 150 kilometre stretch of pristine coastline, Perth has one of the largest urban sprawls in the country.

On a good day, it would take two hours to drive from one end of the metropolis to the other — from Two Rocks in the north to Dawesville in the south.

Perth is also experiencing a huge land sale boom unmatched by any other Australian city.

The quick uptake of tens of thousands of dollars in government COVID-19 economic recovery bonuses for new homebuyers and builders mean an estimated 17,000 extra homes will be built in Perth this financial year.

But where will all these people live? The answer is nowhere near St Georges Terrace in the city's CBD.

Ben Gregory, 23, had been looking to build a home long before he was able to sink $55,000 of government stimulus cash into his first home.

In the manic rush triggered by the announcement of the State Government's Building Bonus grant and the Commonwealth's HomeBuilder grant, he purchased a block at Honeywood estate, about 33 kilometres south of central Perth.

"The websites weren't updating as fast enough as the blocks were selling," he said.

"Nothing was entirely accurate at that point; you just had to guess and then go and see if the sign on the block said sold.

"People were just ringing up and saying 'I'll have that one' not even looking at them.

"It was probably the quickest amount of time I'd spent $300,000."



WA is having its biggest-ever land rush, and Perth may look different on the other side

 

Now we just need the end product to rise

 

That sounds like Sydney on a Saturday morning driving from anywhere in the outer ring only half way across the city!

 

That was my first thought. Will the end product sell for a profit. I think people get carried away and pay too much for land. The profit is when you buy well

 

I am seeing a resurgence in FHBs rushing to middle of nowhere estates fueled by FOMO, god save them ...

 

That’s exactly what some of them want though. Everything nice, new and shiny as opposed to an 80s duplex with exposed brick and a mission brown bathroom.

 

Mmmm Mission Brown

 

I work with a few of those. They think their house will go up in value just like their parents did who brought in the outer suburbs. The trouble is the outer suburbs used to be suburbs like Greenwood

 

I wonder how this will impact property value as whole, i spoke to my bank manager and conveyancor about how business was and they said that they have had two of their biggest months in a while. Not many investors, mainly FHB buying land to take advantage of the 40k handouts. The Second lot are people moving to bigger houses. I wonder if this will mean a property value stays relatively flat especially around the sub 350k market and apartments.

 

Whenever me/my brother have ‘passionate’ discussions about the disparity around housing affordability between my parents generation and ours (“we had 18% interest rates!!!” Vs “the median house price in the cheapest city is now like 7x the average annual income instead of 2-3”) etc the conversation always finishes with mum and dad saying “well we just wish we bought the block next to ours when we first started out”...in sorrento. They were also a young couple with kids on lowish income...

 

Attitude determines altitude. I would have told the enquirer the sales price and said the bar is rising. I would recommend other items for the enquirer and told him if he didn't want to be disappointed, he got to act fast and the seller was genuine and "highlighted" whatever reason to sell. The agent would have got two sales in one shot.

 

Perth Market Snapshot for the week ending 20 September 2020
NEW
21 September 2020


Sales activity decreased one per cent in Perth this week, with REIWA members reporting 826 transactions.

This decrease can be attributed to a five per cent rise in house sales, 10 per cent fall in unit sales and 19 per cent fall in vacant land sales over the week.

Properties for sale


There were 10,686 properties for sale in Perth at the end of this week, which is in line with last week.

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

This week's total figure is one per cent lower than levels seen four weeks ago and are 23 per cent lower than levels seen a year ago.

Perth rental market


REIWA members reported there were 3,028 properties for rent in Perth at the end of this week, which is two per cent less than last week.

This week's rental listings figure is nine per cent lower than levels seen four weeks ago and are 52 per cent lower than levels seen a year ago.

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

 

Properties for rent down again nearly in two thousands!!