WA Perth market 2020

No, but I have friends who live there

Apparently you can't live there unless you can pronounce "Mandjoogoordap Drive"

With some mining companies requiring workers be WA based, or putting WA based workers first, it bodes well for WA

https://www.watoday.com.au/national...wa-centric-hiring-policy-20200910-p55u57.html

 

been speaking to agents up north and the push for workers to live local or at a minimum in WA is part of the reason i have been looking at WA
had a look at perth and there are some cheap houses around in cheap areas but the good opportunities.have dried up- dont normally like buying a vanilla property (like to keep options open if i dont want to long term hold)

I was kind of under the impression that investing in WA was less about the capital city proximity as wealth is spread around due to FIFO
Hence why i thought Mandurah might be a beyter option than say Gosnells or Armadale

 

Not neccesarily buying to develop but if a market booms you are always going to get a higber % of growth from a property that is able to be developed

Have a look around Mandurah on satelite maps
I dont know the exact history but there was obviously a time people were making good money developing these blocks
I believe it was around 2005? could be off here as not a local

 

@strongy1986 I am a Mandurah / Rockingham local.
RE central Mandurah: Basically it is massively oversupplied with R60+ development blocks. The entire town centre is zoned in this way, which is far more development sites than there is demand for villas and townhouses in the foreseeable future. Yes it's dirt cheap and I think there is a chance you could double your money on a block in the space of a few years if the economy and Perth market takes off - $400K for one of these blocks makes sense if the demand and value of end product lifts just a bit. BUT there is also every chance the demand for units in this area doesn't come through enough and you'll have something that goes nowhere for 10 years. So you'd be taking a real punt.

RE western Waikiki (and even Safety Bay at a pinch): I like this area for the reasons you have outlined, at ~$300K entry point you can get a solid 3x1 with strong rental and owner occupier demand in a nice family area. Outer areas like this will lag inner areas in growth and there are probably better places in Perth to invest in this regard, but compared to the other area you have identified in this price bracket (Gosnells) it's streets ahead IMO.

 

Any local insight into how the neighbourhoods change within that Rockingham - Mandurah? After shoal water (seems like the most expensive suburb), prices start to lower till Waikiki/Warnbro then stable around Port Kennedy (with some higher priced builds)

Whats the demographics? Does it get a little better the further out of Rockingham?
Any views of Golden Bay ( I believe a new train station will also be built next year making commuting easier - if having to go into Perth etc but still appears to be in the middle of nowhere

 

I actually don't mind Mandurah - I've holidayed and visited there plenty of times. I just wouldn't invest there. The opportunity cost to me is too high when I can use that money on a suburb with better prospects

You also have to consider how BIG it is. It is huge so there is nice parts and meth-hole

 

Rockingham wise (the LGA), Shoalwater and the old parts of Rockingham are the more prestige areas; in Mandurah it's the canal estates and I'd say old areas of Halls Head (west of McLartey Rd) that are prestige. You've picked up the trend pretty well - outside of these areas anything within walking distance of the beach is desirable and leafy, whilst the suburb quality generally declines noticeably as you move back from the coast though there are of course exceptions.

Golden Bay is a nice spot that will be quite good with the train station, though I thought this was still several more years away. Be aware however that there are significant areas of green-field estates within and adjacent to the suburb that might temper demand/supply for years to come.

 

Im only looking at maps - Golden Bay with a train (which wouldn't be walking distance from any house that is from the beach) still looks likes in the middle of nowhere. And yes the amount of land that could potentially be developed is also an issue.

Warnbro - seems to be a bit of a mix. House also seem to be developed 90s with low maintenance brick on slab and a few with second bathroom. Again I don't believe these are hotspots (due to how far they are) but looking at it more as decent yield ip with even potential temporary ppor if I ever move to the west

Waikiki/ Safety bay actually seem a bit pricier with walking distance to the beach even going upto 4-500k v high 2s

 

Yeah good properties in the high 2s / low 3s are few and far between now, the market has tightened since last year. Something like this might suit https://www.realestate.com.au/property/7-biscayne-st-safety-bay-wa-6169
If your budget is high 2s and are keen on a house (not a unit) in Perth also consider Thornlie, Langford, Huntingdale etc areas especially if forced sales start coming through in a few months. Excellent rental yield and good growth prospects over the long term due to CBD proximity but there are good and bad areas of these suburbs so be careful. There would be other middle ring Perth suburbs that also fit this bill but i don't know north of river areas as well as i do south.

 

Im sure theirs a lot better, even beckenham, or Cloverdale etc can be had. What attracts me is the distance to the beach (only other capital city I can think of is Adelaide) where property can be had in this price and still commutable to cbd (even if its not desirable the ease)

 

And Sold to a cash buyer. Better than 1% interest at the bank.

 

Address?

 

We you look at for sale signs around Perth, every second one has an 'under offer' sticker on it! So i expect some upward pressure on prices.

 

Very very low stock in the areas I follow (about 15 postcodes). All under offer.

 

Is the B and C grade stock starting to move?

 

What do you consider A grade suburbs?

 

b grade stock in good areas yes.

 

Hi BD,

Can you describe what you consider as A,B and C class suburbs ? I do not know about classification criteria.

Rooky

 

Some more positive press coming through RE the Perth market. Good to see sentiment swinging...
The ‘unlikely’ city where property prices are rebounding
Perth is set for a property market boom: Terry Ryder

 

Thanks for the links. I got a great giggle at the end of the first one
"The five suburbs in Perth Ryder believes are set for property price growth are: Stirling, Joondaloop, Rockingham City, Kwinana and Wanneroo."