WA Perth Market 2021

From Today's West on why Perth growth is horrible compared to the rest of Australia.

Is Perth’s housing boom running out of steam?

Damian Collins, president of the Real Estate Institute of WA, said WA homeowners were still carrying the cost and the psychological impact of the last property downturn, which was the longest and deepest in history.

He said the 11 per cent price growth for Perth property over the past year had helped boost confidence but there was still a degree of caution.

“A lot of people are battle-scarred by what has happened,” he said.

“The challenge for WA is that in the last five years, there has been very little equity growth,” he said.

“If you bought in Sydney a few years ago, you might already have $300,000 to $400,000 in equity, so you would feel confident about upgrading.

“But in Perth, if you bought anytime since 2014, you have basically gone backwards.

“There is a bit of household balance sheet repair going on at the moment and people don’t have the equity to go out there and upgrade,” he said.

Mr Collins said in a regular market, Perth property prices would be higher than in Hobart, based on population and economic strength, and at least $100,000 higher than the Adelaide’s median.

However, it was currently failing to hit either of those marks.

 

A lot of guys I know are still reeling from the prior downturn. Properties bought in 2008 were selling in 2020 for the sale price.

the market is moving and some people (who got burnt) will sadly wait until the end of this movement to buy in again - repeating the cycle (sadly).

 

The simplest explanation could be that it's being dragged down by suburbs that are still experiencing negative growth. It's not hard to work out but it's going to be areas that I don't follow so I'll have to look it up.

Data from Perth Suburbs Median House Prices and Growth Rates - REIWA

Suburbs with negative median HOUSE growth for last 12mths
Alfred Cove -6.90%
Bickley -18.10%
Brentwood -1.10%
Burswood -0.4%
Cardup -14.9%
East Perth -7.7%
Forrestdale -28.30%
Herne Hill -28.80%
Jarrahdale -14.90%
Jolimont -3.9%
Kallaroo -5.70%
Karawara -2.2%
Karragullen -8.50%
Manning -0.10%
Mariginiup -2.3%
Menora -4.3%
Murdoch -4.8%
Northbridge -6.4%
O'Connor -2.5%
Osborne Park -6.5%
Peppermint Grove -13.5%
Riverton -2.2%
Shelley -7.5%
Viveash -6.1%
Waikiki -1.4%
West Swan -3.2%
Whitby -2.1%
Wooroloo -22.10%

Ok so that was a little surprising. I had assumed that there would be more outer land estates in there but they have had some positive growth - though mainly sub 5%

What is there is some outer metro lifestyle suburbs - Karragullen, West Swan, Mariginiup, Wooroloo etc

Also seems to be a possible trend around Curtin Uni (Shelley, Riverton, Karrawara, Manning) that might have been impacted by not having OS students and owners selling off in a panic

 

It does look like it could be cooling off a bit, or maybe people are sick of the current sales tactic where they won’t list a price, then when you message the agent asking for a price range they just give you the home open time.

This property sold earlier in the year for $510,000. Looking at history of it it looks like it’s strata property to make up the 424sqm. https://www.realestate.com.au/property/80-penzance-st-bassendean-wa-6054 (zoning R20)

Comparable property been on the market a month. Nicer features but smaller block. I think the zoning is R25, so at 308sqm part of that may be common property? Has anyone viewed the Morley property? Any idea why it hasn’t sold? https://m.realestate.com.au/property-house-wa-bayswater-136329594

 

Peppermint grove stats move a lot due to the wide range of house values.

 

Yup a lot of smaller suburbs with low transaction numbers can really be hard to look at statistically. So those lifestyle suburbs can also have the same issue - there is $300k and $2m houses in the same suburb.

 

One thing for sure is that business have a massive wages pressure right now. Everybody is in short supply.

Once wages go up (and it has only started) people tend to spend their wages.

 

Need to becareful with stats, not necessarily showing the full picture. Too broad

 

Is that also the case with Kallaroo as the price range is wide so the stat is not reliable? I am looking at lower end of that suburb and still very hard to get a look in as houses sold very quickly. Due to that demand, seller still gets good price and does not seem to stay stagnant or price dropping.

 

Kallaroo is probably down because you now get a block at least half the size. https://www.domain.com.au/sale/kall...MImKXqmN2T8gIVCyQrCh2pTQhBEAAYASAAEgJy0PD_BwE

 

I'm an east coast buyer and if wa continues to underperformed other states ill probably buy another wa property because the value is there.

As for the east coast west coast thing. I tend to believe most don't really know of wa as being an option. If I was an average income guy I'd head west in a heart beat because I can live a better life in a nice property. I think WA needs an advertising blitz over here to get you on the radar.

 

I was typing before I saw your question. I was looking at Kallaroo and surrounds last peak and start of downturn. It was easier to buy back then, then now. Not many listings and selling from database before being listed at times.

 

Yes, sub-division will pull the price stat lower. So hard to tell from that city or suburb median price changes.

 

Yes the only true way is to compare very similar properties that have sold, or the same property that has sold a few times. Find a few sales to get a better picture. Small suburbs always tend to be very wrong as often they include previous quarters sales stats if there is not enough sales. Kallaroo and Hillarys have some very nice and very ugly streets also so prices vary heaps. I’m sure the ugly streets will change eventually given the location and rezoning.

 

Hi All,

Im looking to buy an investment property in perth, would like min 4% yield and be able to develop down the track. What are the best options with a budget of 800K? Id like to be as close to the city and water as my budget will allow

 

I was in a similar position earlier this year and great budget. If you want a developable block might have to compromise on your yield (3-3.5%) as you wouldn't want to buy a property thats too nice (specially if will be knocked down in a short to medium term).

Will have to pick water v city as probably cant get both in that budget. Personally pick city > water if development is also a consideration for future. Lot of the closer to city suburbs are older with more tired dwellings so your just paying for land value (still rentable condition etc)

 

There's no way that list of median growth/fall rates accurately depicts the movement of comparable properties on the ground.

Just goes to show the weakness of using median house price stats.

 

Suburb Information

 

Yup if you used that data and went to a home open in Alfred Cove and start low balling because you can see the suburb has had negative median growth you'd probably be sent packing.

 

Lol… they would be calling u a tyre kicker