WA Perth Market 2022

{Note: thread continued from Perth Market 2021}

Started slow but Finally happening, wait till borders open

Wonder if units will start moving


WA house prices, rent set for MAMMOTH growth in 2022

 

I’m thinking about buying in Perth in 2022! Will start looking in early Feb - around $500K - will be following this thread closely!!

 

Is there a 'normal' settlement timeframe for WA?

 

I recommend you Review old threads lots of info here

Most suburbs mentioned have already seen 10%+ growth. 2022 going to be a great year

 

Depends can vary. After finance approved I think around 3-4 weeks??

In hot market….I ask what buyer wants.

 

Sort of but everything is negotiable. Generally the standard is 21 days for finance and then 21 days for settlement. When banks are slow I tend to use 28 and 28

 

Thanks guys. 4 weeks after finance is plenty.
In QLD they wanted 35 (incl finance) and it was a bit stressful for us.

 

The outlook is looking good for Perth. The best in a long time.

2021 was a good year and will be looked back as a turning point, where the market started to bounce back after 6 or so years of decline and stagnation from 2014-15.

My wish list is for the Perth median price to overtake its 2014 peak, and for the apartment market to improve.

 

I think there is an over supply of apartments in all capital cities

 

This is not a bargain. However a good one to perhaps hold and add value/develop down the track
Morley ticks many boxes and this location is pretty good????

https://m.realestate.com.au/property-house-wa-morley-136630862

 

21 days, but i know someone who goes in hard with cash and 14 days settlement

 

Rents have been increasing for apartments in Perth metro area over the last 1-2 years. Just hope for some capital growth.

 

This is great news

 

We are looking to get into perth market so some advice please - Plan is to hold onto for capital growth (hopefully) and something thats rather cost neutral:

We are unsure whether to go for new build or something established.

New build in Forestdale - seems to tick all the boxes for infrastructure being spent on the area and proximity to schools etc. maximises the tax benefits for depreciation
or
Should we be looking at an established home in a area like Rockingham.

Thanks for any advice

 

I'm going to assume the Forrestdale build is in a new estate?

Why just those 2 options? I don't know your budget but I think there could be better areas but can't really say without more information. At a very macro scale between the 2 choices of a new build in a land estate vs established house on a larger block I'd probably go established but it's a very nuanced verdict and needs more options and information.

 

While not at Perth city level, but many suburbs have gone past 2014 peak right? At least a few north west suburbs that I looked at. I think many sub-divisions, new builds keep the city median lower too.

 

Becareful with building in Perth atm, its crazy and builders are putting up prices even after signing build contract

read this


Building costs can blow out

Also opportunity cost? Are you better off buying established, considering building could take 18 months

I am a huge fan of Rockingham, its going to keep rising

 

We are tentatively looking at getting another property and considering Perth (all very early days- just been reading this thread and it’s predecessor).

What is prompting investors to think Perth will boom? Is it Covid? Because Perth will be just as stuffed as the rest of us with time. Is it catch up with other states/from the crash? The crash concerns me too, I feel like the market is more volatile there than the eastern states.

PM costs are also quite expensive there aren’t they?

 

It's quite a few things
- years of very little new supply since 2014 causing undersupply which increases competition and values
- overall affordability - attracts investors from East increases competition and values
- strong economy with a number of large projects to come
- low unemployment and shortage of employees who will need to come from other states/OS who will most likely rent
- strong yields - generally higher than other capital cities attracts investors from East increases competition and values

Yes PM costs are more expensive than Sydney but somewhat comparable to other states.

Perth has already seen some significant growth in the last 12-18mths and most likely will continue so "will boom" might be "already booming" but it depends on what you call a boom.

 

Just to add about PM cost in Perth based on my limited experiences:
1. It is higher than many other capital cities but that seems to come down - at least if you negotiate and look at other agencies that people posted here. Initially I read it is about 13-16% all inclusive but you can definitely get a few % lower than that or at least get main PM fee in single digit with some other charges. Still 1-2% more expensive than Brisbane for me though.
2. PM fee is what we can see quickly but don’t forget other costs like council, water, insurance, land tax, etc. for example for my case, water / service bill in Brisbane is more expensive than Perth.
3. Overall, I would think in the current market, net yield in Perth is still more attractive than many other capital cities. However that cost / profit is still relatively small compared to long term CG, which is unknown, multi million dollar question right?