WA Perth market 2020

Discussion in 'Where to Buy' started by Redwing, 1st Jan, 2020.

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  1. radioactive

    radioactive Well-Known Member

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    Interesting..did you work with them in Aus.
    I have worked the them in Japan.Very honest and ethical business practices.
     
  2. Propin

    Propin Well-Known Member

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    I worked for a subsidiary company during the development stage. Sold now. 22-24 years ago in Brisbane. Yes I have very good memories of dealings with Sumitomo. Lovely, respectful people.
     
    Last edited: 20th Jan, 2020
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  3. Scaphella

    Scaphella Well-Known Member

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    Perth market snapshot for the week ending 19 January 2020
    NEW
    20 January 2020

    Sales activity increased 11 per cent in Perth this week, with REIWA members reporting 595 transactions.

    This increase can be attributed to a 10 per cent rise in house sales, nine per cent rise in unit sales and 22 per cent rise in vacant land sales over the week.

    Properties for sale
    There were 12,562 properties for sale in Perth at the end of this week, which is one per cent more than last week.

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

    This week's total figure is six per cent lower than levels seen four weeks ago and are 24 per cent lower than levels seen a year ago.

    Perth rental market
    REIWA members reported there were 6,169 properties for rent in Perth at the end of this week, which is one per cent less than last week.

    This week's rental listings figure is seven per cent higher than levels seen four weeks ago, but are 14 per cent lower than levels seen a year ago.

    View our Perth Market Snapshot graph for a detailed breakdown of the past week.
     
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  4. DAZ79

    DAZ79 Well-Known Member

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  5. thatbum

    thatbum Well-Known Member

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    Do you mean the price? Or the virtual staging?

    Price doesn't seem remarkable - rear townhouse on a major street near a busy intersection?

    I like what they did with the virtual staging though - with photos with and without the furniture.
     
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  6. DAZ79

    DAZ79 Well-Known Member

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    The price. Thats some bath for the owners who bought in 2014.
     
  7. Rex

    Rex Well-Known Member

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    20% loss of value since 2014 - sounds typical for this sort of stock to me.
     
  8. DAZ79

    DAZ79 Well-Known Member

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    Mc Gowan was getting stick today for talking up the economy in spite of the dreadful fundamentals. But he has to do that.

    Those kind of losses scream balance sheet recession among households.

    100k is three or four years saving plus for most. Evaporated. How long will it take to make that equity back?

    Over 10% of WA households in negative equity and another 5% very close I reckon. That’s enough to make anyone close their wallet.

    Difficult to see how the economy can improve without some house price inflation and wage increases.
     
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  9. Rex

    Rex Well-Known Member

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    Yeah I think loss of household wealth through property price falls is itself a big handbrake on the state economy. Your average household has lost perhaps $100K of wealth in recent years, whereas most other states have give the opposite way.

    Won't take too much to turn things around with a bit more employment and population growth, and there are some (forgive the cliche) small green shoots e.g:
    20200122_200606.jpg
    IMG_20200122_201528.jpg
     
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  10. Propin

    Propin Well-Known Member

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    From my point of view I think wages dropped a year ago but back to normal now. So not a rise in wages but not getting paid less either. I don’t really think too much of stats but more so of what’s happening to people around me.
     
  11. strats01

    strats01 New Member

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    Hi guys! First time posting to the group and brand new to the property investing world! Currently just in the research phase but my partner and I are looking for an IP, most likely in Perth. He is a builder so we are looking for a fixer-upper. Budget $350-420. We should be able to go for first home buyer given we will live in and renovate for first 6 months.. looking at potentially something on a larger block that will be subdivisible in future - maybe a retain and build - so far looking in Hamilton hill and Morley/Embleton areas.. any other areas you might suggest or tips would be very welcomed!! Was looking at this one although position on main rd obviously not ideal.. 63 Forrest Rd, Hamilton hill
     
  12. strats01

    strats01 New Member

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    First home owner rate of duty I should say!
     
  13. Ketsle

    Ketsle Well-Known Member

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    "The slowdown in consumer spending is weighing on business confidence, with three-quarters of WA businesses expecting economic conditions to weaken in the next few months. This reinforces concerns that Western Australia’s economy has entered the new decade in ‘survival mode’. Read more on the state of the economy, with our WA Super - CCIWA Business Confidence Report > https://bit.ly/2IZNVZ6 hashtag#CCIWA"

    [​IMG]
     
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  14. DAZ79

    DAZ79 Well-Known Member

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    To make up 100k in lost equity is not going to happen overnight.Years without a boom.

    On a more postive note, unemployment down to 5.4% lowest since July 17.
     
  15. Scaphella

    Scaphella Well-Known Member

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    Just increased the rent $15pw on one of our IPs, anyone else plan on I increasing rents this quarter ?
     
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  16. Scaphella

    Scaphella Well-Known Member

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    Vacancy rate continues to lower in December quarter

    NEW
    23 January 2020

    The Perth rental market continued its recovery in the December 2019 quarter, with the vacancy rate declining to 2.4 per cent and average days to lease falling to only 39 days - the fastest since March 2015.

    REIWA Deputy President Lisa Joyce said the last quarter of 2019 showed Perth’s rental market had strengthened, with signs that it could continue as we head into 2020.

    “With the number of listings available on reiwa.com falling by 18 per cent compared to December 2018, it is putting pressure on the vacancy rate which has lowered to where it was in March 2019.

    “This is also impacting the average days to lease making it four days quicker than this time last year. With fewer available rentals on the market, competition amongst tenants has increased requiring them to act faster to secure a lease,” Ms Joyce said.

    Median rent price
    Perth’s overall median rent price continued to hold at $350 per week during the December quarter.

    “The median rent in Perth has been stable for 11 consecutive quarters, which is the longest stretch of stable rents Perth has seen since reiwa.com first started capturing rental data in 2001.

    “When we drill down further and isolate houses and units, the results for the quarter are very pleasing for landlords, with houses and units experiencing increases in rents compared to the December 2018 quarter.

    “The median house rent increased $10 per week to $370, while the median unit rent increased $5 per week to $330 compared to the last quarter. If the vacancy rate continues to decline, we can expect rents to gradually increase throughout the year,” Ms Joyce said.

    reiwa.com data revealed East Fremantle saw the biggest increase for the December 2019 quarter which had a $50 increase to $570 per week. Embleton followed with a $30 increase to $360 and Kingsley saw a $23 increase to $450 per week.

    Leasing activity
    There were 12,435 properties leased in Perth during the December quarter, which is down six per cent from the last quarter and four per cent down compared to the previous year.

    “Leasing activity slowed during the December quarter, as the festive season saw less people searching for properties. This is very common at this time of year, with activity tending to decline in December before increasing again early in the New Year,” Ms Joyce said.

    reiwa.com data shows the five suburbs to experience the biggest increase in leasing activity for the December 2019 quarter were Ocean Reef (113 per cent), Willetton (53 per cent), Applecross (50 per cent), Cottesloe (42 per cent) and Mount Lawley (38 per cent).

    “Increased activity in these five suburbs closer to the end of the year suggests that tenants are taking advantage of the lower rent prices in the higher end of the market before the new school year commences, as 20 of the top 50 WA schools are located within these suburbs,” Ms Joyce said.

    Listings for rent
    There were 5,616 properties for rent in Perth at the end of the December quarter.

    “Listings continue to fall, with the December quarter figure down nine per cent on the September quarter and a substantial 18 per cent on the same time last year.

    “The sharp decline in listings is a driving force behind why Perth’s vacancy rate has improved. With population growth in Western Australia on the rise and fewer new-building projects commencing, rental listing stock is being absorbed more quickly,” Ms Joyce said.
     
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  17. Rex

    Rex Well-Known Member

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    All quite positive and consistent with the trend over the past couple of years. Although 5.5 weeks is still quite a long average time to have your property vacant while finding a new tenant.
     
  18. JohnPropChat

    JohnPropChat Well-Known Member

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    That includes the out there burbs which are still dragging the rest of the market down. One of my IP's in Vic Park was rented out in 2 weeks flat not that long ago and with multiple applications.
     
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  19. DAZ79

    DAZ79 Well-Known Member

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    Yeah, that and the massive variation in stock quality.
    Basically, landlords (many reluctant to throw good money after bad given price falls) who are offering stock in poor quality are losing out badly.
     
  20. JKB

    JKB Well-Known Member

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