Perth's housing market is still lagging behind — and it will take more than a rate cut to fix things

@See Change

Is this one?

The PChat score ... The king is dead , long live the king

 

Same. What rent were you getting and how much are you putting it up by?

 

Not specifically what I’m referring to

cliff

 

ONly about $10-15pw. But hey...that is progress....

 

Shame about Perth’s median price

Just to think our median house price in 2007 surpassed Syd, it was only for a few months, peak of mining boom....and now we see Adelaide surpass Perth....crikey. Scary

Australia's remarkable property price turnaround: National house prices regain a third of losses in past two years

 

The good old days, i was there in 2005 for 3 months for work. I remembered morning tea discussions were 80% property related subjects.
I suppose that the harder it drops, the more opportunity it provides, I just wish the bank could lend me more to scoop more. Good times will be back.

 

I like your confidence. .

 

Yes
If you can make money in any downturn market its a good thing. It would probably require adding value and low balling?? Is anyone doing this?

 

The house I bought late last year sold via Openn Negotiation. Reserve on my property was 800k and I bought for 730k.
I have been attending Home Opens and viewing properties in the area, speaking with potential buyers and Agents and some people have been low balling big time. Some offers up to 100k under asking. Not many sell more than 50k under asking but many old and original homes are going 20-30k cheaper. I have seen 30-50k price reductions for fear of being stagnant on the market.
In contrast, renovated properties priced well tend to sell above asking. There is demand among buyers for select "100% move in ready" homes with no work required.
Personally i don't regret buying an unliveable home and completing a full renovation throughout. In the future I would consider perhaps a less extensive renovation that requires less structural work.

 

Congratulations. What area and how did you get it 70k under reserve?

 

The house is situated in Booragoon and basically there were 3 registered bidders and we won at 710k. The others chose not to bid and the sellers offered it to us for 760k (our max was 760k) and we negotiated down to 730k. It was unliveable and required an extensive renovation but we were FHB and wanted to maximise our reno budget as much as possible.

 

Yes. @Westminster is.

I have been adding to my Perth portfolio and adding value since 2015. My latest project is an Airbnb. It's going great and getting a lot of bookings. Perth might be in a downturn but we are getting guests from many countries that are not in a downturn. They think it's great!

 

We have ignition! Is WA’s lacklustre economy ready to roar to life?

 

Cant open this damn

 

Yes same. Are you able to copy and paste the text please?

 

WA’s economy has been a laggard in recent years as the hangover of the mining investment boom lingers, but data from two regions is cautiously pointing to a potential resources-led recovery.

While house prices in Perth continue to grind lower, the Pilbara Development Commission recently reported a 12.2 per cent increase in median house prices in the mining region over the past year to $289,500. That figure represents the highest recorded in a six-month period since 2016.

Rents are also on the rise in Karratha, Port Hedland and Newman as rental stock dips below the peak of the previous boom.

Pilbara Development Commission chief executive Terry Hill said interim data for the second half of the year was showing the upward trend witnessed in the first half was continuing.

He attributed the rise to servicing and maintenance staff and contractors being needed as projects entered steady-state production after the construction boom of 2008-2014.

He also cited a renewed focus on local procurement from resources companies and the growing proportion of operational roles that were more likely to be residential positions than fly-in, fly-out.

Importantly, Mr Hill points out employers are expanding their local presence in anticipation of more than $110 billion worth of projects either committed or under construction in the Pilbara over the next 10 years.

The new projects are expected to create as many as 25,000 jobs during construction and 8500 new operational roles.

As well as a quartet of multibillion-dollar iron ore projects by the three majors (BHP, Rio Tinto and Fortescue Metals Group) already in progress, hopes for final decisions on the massive Scarborough and Browse LNG projects are boosting optimism and activity.

The two offshore gas projects collectively represent a capital investment of about $50 billion.


Rents are on the rise in Karratha, Port Hedland and Newman. Credit: Jackson Flindell
WA Chamber of Minerals and Energy chief executive Paul Everingham said the Goldfields was also booming with a strong performance by its two key commodities, gold and nickel, driving new projects.

He said many employers, including rail operator Aurizon and infrastructure development company Tellus, were citing worker shortages in the region.

Mr Everingham predicted a looming final investment decision on the $15 billion Scarborough LNG project could be an ignition point for the WA economy.

“If Browse ($30 billion) happens within 12 months of that, we think that WA would be really, really bubbling,” he said.

Despite the strong regional data, WA Chamber of Commerce and Industry chief executive Chris Rodwell said WA’s broader economy was still struggling to hit full stride.

But he noted the resources sector was again leading a slow and steady recovery.

The solid pipeline of new and replacement projects is set to turn a 9.1 per cent decline in business investment last financial year into a 6 per cent growth in 2019-20.

Mr Rodwell said unemployment in WA, at 5.7 per cent in October, had come in lower than forecast, but 141,800 West Australians still wanted more work and couldn’t get it.

“This represents unused grunt in the workforce,” he said.

CCIWA predicts the WA economy will grow by 3 per cent this financial year, representing a significant lift on last year, when it had the lowest growth of any State at just 1 per cent.

Despite the encouraging signs, West Australians are not expecting a repeat of the boom times, reporting their lowest level of confidence in the economy since December 2017.

More than three in five WA consumers say they don’t feel confident to make major household purchases, with the cost of living the biggest dampener on confidence.

“While 62 per cent of businesses say they expect either steady or improving economic conditions in coming months, low consumer demand has consistently been the biggest barrier to growth and confidence,” Mr Rodwell said.

A major driver of local anxiety is the economic headwinds WA is facing globally, including the US-China trade war.

WA Treasurer Ben Wyatt said the State was not immune from the ongoing dispute between China and the US, and global and national issues remained the biggest threat to the WA economy next year.

He said the McGowan Government was in a position to make targeted decisions to stimulate the economy where possible and prudent.

“While we have our challenges, the State Government is very much controlling what it can control and clearly the WA economy is improving,” he said.

 

But you have won the lowest $/sqm for a 3-year period in the street and area! At least during my following of the market. Well done!

 

I am happy with our purchase but it has come with stress and required a lot of hard work - some of which is still to be done - that's just what it takes to grow and progress though!

 

Judging from Rpdata index, Perth propperty price is finally turning corner at about .5% for the month. Hope this trend will continue as vacancy will continue to tighten.

 

Fingers crossed it’s not another false dawn this time!!!!