WA Perth Market 2021

{Note from mods: this thread continued from thread Perth market 2020 [WA]

In addition to what you mentioned, the downturn of the market in the past few years made the properties very affordable, which is an important ingredient for creating a property boom cycle. I just purchased a house 2 weeks before Christmas. It was more than 20% lower than its sold price 15 years ago. After a little bit of research and calling the council, I found out that the owner got subdivision DA approval for building a 3 bedroom house at the back in 2007.

Moreover, the economy has improved in a relatively short period, which leads to the creation of many new jobs. This makes people move to WA and causes a dramatic drop in the vacancy rate. The returning expats have also contributed to the low vacancy rate and rising property prices.

 

Thats brilliant you can actually add value.
DA would have expired

Do you mind sharing the area?

Regardless fantastic

 

It is in Armadale. Initially, I was not too keen to buy there as I was targeting for a property in a nicer suburb closer to the CBD. However, considering that I am getting a large block with subdivision potential and an expected more than 7% rental return, I pulled the trigger. The DA has expired. However, the council advised me that they can give me the previously approved DA documents for about $70. Certainly, I need to modify the DA to comply with the new code if I want to develop the site. I am considering doing the subdivision once the property price goes up substantially. The agent was not aware that there was a DA approved previously.

The owner was keen to sell the property before Christmas as he needs cash urgently. In the end, I was able to get the deal done at an exceptionally good price. December is a good time to buy especially when there are some desperate sellers.

 

REIWA: Perth Median House Prices, Sales Volume and Rental Market Data - REIWA

Perth sales activity up 42.5 per cent in December

04 January 2021

December sales activity saw 3,067 transactions for the month which is an increase of 42.5 per cent when compared to the same time the year prior.

Perth residential sales market
REIWA President Damian Collins said traditionally December experiences a reduction in the number of house sales due to buyers going away for the festive period, yet this year we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions whilst they are unable to travel.

... read more: Perth Market Snapshot graph.​

 

Hopefully you have a great deal, however generally for Armadale it has been on various lenders postcode risk lists, and is a sea of hopeful property investors / developers hanging on to improved stock reduced to land value or blocks that are uneconomic to subdvide. The few rentals I managed there were hard work, and selling new properties for small developers a thankless task as they were making a loss. Yes it has a train station but its for the brave, as is investing there.IMO.

 

This sounds like Balga

 

But Balga is 15km from CBD a short run down Reid Hwy to coast. Surrounded by areas to work.

Armadale is a long way from anywhere. They are releasing new land near Haynes shopping center. People in Armadale can't afford to buy now they won't be able to in the future when/if prices rise.

 

Right

Balga may be near the city, however developers went hard and area is flooded with same product, and prices really dropped

I have not looked recently, perhaps volume now shrinking? Perhaps some here will know more ???

Armadale, I cant make the numbers stack up in terms of developing, as per OP post

 

Happy New Year everyone.

It is time for a Perth market 2021 thread.

 

There was one but it started on the 30th December so the mods put it back into here. Let's try again Perth Market 2021 [WA]

 

Continuing on from Perth Market 2020 Perth market 2020 [WA]

 

Will the market rally for the rest of 2021? Would trade war impacts on WA's growth? Thought to start a discussion...

 

@MTR my daughter and ex partner sold a Nollamara villa with multiple offers received a few months back. Ended up selling to a cash buyer who got sick of missing out on Balga properties so paid more than they wanted to secure it. My friends son also purchased at that time a new villa in Balga with all the bells and whistles. Got all the grants. Recently finished uni and a high income earner. Even over the weeks my daughters property was on the market the prices started rising and appears to have continued.

 

I wonder why they are predicting 55 USD per tonne iron ore while it is currently trading at almost 160 in Dalian. Demand is still roaring full steam.

Perth raked in several billions just in royalties a year at current price. Definitely a lot of money there for their size of population...

 

Well now I have heard everything! If someone said this to me even 8 months ago I would have spat out my drink.

 

Haha

 

Some offers in Nollamara were kids looking to buy for parents to live in, parents looking for their kids to live in rather then rent. Even the previous owners daughter was interested in viewing and putting in an offer but couldn't due to Covid restrictions and not able to travel. I think most of them were also viewing Balga properties but we knocked back the lowball offers.

 

I think this will be a good year. Demand hasn't dropped and I would argue has increased as FOMO has really set in for many. New stock isn't coming onto the market nearly fast enough to keep up and as soon as March comes around the B, C and D grade properties will be snapped up by desperate buyers who need a roof over their head.
I am hopeful China will come around and switch the lights back on but from what I have seen, they appear to have no ability to take a backwards step when they are on a full rampage against any country who they deem to have done them wrong.

 

Well, they will start missing the lobsters and fine wines soon enough... And they have stopped their power plants "occasionally"... for maintenance purposes as per news reports...

 

Just been checking properties in Floreat, City beach, Wembley and those types of areas and most seem to be under offer. Have never seen this before. Anyone wanting to buy a PPOR will need to bid big and have deep pockets. This will eventually force buyers into B and C grade properties. Evidence is already there that buyers are being forced down into the Balga properties and even Armadale seems to be selling well. No disrespect to any of those areas BTW.