Perth’s property prices continue to slump

I don't like the boom - bust cycle either. Slow but steady growth would be great at this point.

 

The median house price in Perth is around $550K, against a household income of $80K to $90K. That's a multiple of six or seven, which still isn't that affordable.

Given low immigration rates into WA, poor yields, and APRA tightening rules, I can't see things taking off. It's probably agents trying to talk the market up.

 

It will be interesting to revisit this at the end of 2018.

 

Imo people who analyze real estate this way in Australia will be misled most times. It doesn't matter if the median is multiples of 5,6 etc times. If people see value in a high demand area and can get the loan then they are going to buy it and hold it for as long as they can. Its that simple. Before Syd and Melb started to boom last cycle, I was hearing the exact same arguments from many as to why prices wont go anywhere.. and look what happened. Real estate in Australia has a very strong emotional connection with the people here and with the immigrants who come to live here. Rationalizations of why real estate is expensive relative to income is all mumbo jumbo to most people/families who want to own a home and are willing and able to get the loans.

 

Median house price is half of Sydney's with similar income levels and significantly lower than Melbourne's with higher income and similar unemployment rate, a sweeping comment like yours above does nothing to explain the disconnect between affordability being a challenge to growth here but somehow irrelevant over East. We also had no greoth during close to a decade of very strong population growth so again there is not necessarily a need for it to occur

Some people may be able to confirm but I've been saying for about a year, give it take a few months, that things were changing and that has become more and more evident in last few months with the tone even in the media changing. I've seen with my own eyes multiple instances of properties selling for more than comoarables 2 years ago , or selling quicker, or having competing buyers etc

Many suburbs have seen time on market stats drop and available properties drop, especially for particular segments.

Don't agree that it's just agent talk personally

 

One word price sensitive, buyers market.
Economy needs to improve before we see property prices start to rise

 

I know you spend a lot of time overseas nowadays so maybe have missed some of the updates, the economy has indeed been improving

The number of job ads are up very strongly vs 1 year before, while at the same time the number of people looking for jobs has dropped.

The amount of mining exploration underway is highest since I think 2012 and more than double 12-18 months ago

Unemployment has been on a downward trend for the last 9 months

Iron ore prices are up significantly from lows

Gold miners are more profitable than before due to combination or low AUD and it being easier and cheaper to find the labour and equipment to undertake work

I'm not sure how anyone can say the economy has not improved, yet many do.

 

I wonder if Iron Ore has passed its bottom and is starting to make an upward trajectory..

 

Perth’s best-value real estate: Good news for investors as property market improves

Where to find Perth’s best-value real estate in 2018

 

I'm not sure where i suggested or implied you didn't know what's happening in your playground....

 

Perth may or may not have turned the corner. If it has, it's certainly not significant...and even if it has it certainly does not mean it will have an upward trajectory - could be sideways...
In any case, I'd ask the question of its competitiveness against the others in the market.
There was a poll last year on where would you put your money going fwd. Perth scored pretty low against its competitors ( which I inferred in my above post) . I doubt that those views would have changed a lot since then.
Sure it's limited to only forum members, but I would think it's somewhat representative of the broader market as well, and media reports support that view ad well..

 

There has definitely been a marked improvement in the mining sector. I work in the design and feasibility of mines and I couldn't find any work a year ago. However just before Christmas I was getting multiple calls a week from recruiters trying to find people. My work is all up front but I'd say there will be a huge drive for construction work in the coming years not enough for a boom. But fingers crossed we may get some steady growth.

 

sorry Leo, wrong post.......intended to be sent to OP. deleted, resend

 

We just sold a desirable development site close to CBD - "expressions of interest", it sold in 1 week. However, the offers were consistent with where the market is at, get this wrong and buyers walk, they have options.

My g/friend has been trying to flog her 19 apartments, sold 50%, good product, these did not fly out the door, regardless of having magnificent city views. She confirmed what I already know, buyers have choice.

Yes, heard about all the mining, its noise until it equates to jobs.

Just what I am seeing and I may travel as many do on PC, but I certainly know what is happening in my own playground.

MTR

 

All good.

 

Is just about every major shopping centre undergoing major renovations and expansions right now? Off the top of my head: Carousel, Mandurah, Belmont, Midland, Karrinyup, Innaloo?

EDIT: was going to post an example but this is easier: Perth embarks on new era of shopping centre expansion

 

Whitfords City too

 

Pretty much. The ball was put in motion about 2 years ago. Some have now finished and others still to come.

Their construction projects are a significant source of employment

 

Thats kind of my point, a year ago, a development site just like yours being put on market so close to Christmas etc, would have been highly unlikely to sell in a week. Im hapoy for us to agree to disagree on that but in comfortable that my opinion here is accurate
Regarding your fruends apartments, absolutely. The market for apartments is atrocious at the moment but unlike say Sydney where over half of all properties are multis or grouped dwellings, in Perth it's less than 20%.

As I said in my post before, there's significant improvement in particular sectors. New apartments is definitely not one of them.

 

erm...let me see if I understand,...Perth property prices have been coming down for seven years?, yet this 83 Muru Avenue Winmalee NSW 2777 - House for Sale #127195662 - realestate.com.au, still costs more than this. Village Chateau with a park and a Leisure Complex in the Loire Valley. ........WTF