WA What areas - Perth

Wouldn't go near that until it gets to $350k or less

 

@MTR, I want to know Perth bit more, though I understood the general consensus is too early etc..

I know nothing about Perth. Only know the mining activities did majority of the damage. HTW clock cycle puts it at 12pm or past that time.

My question is did Perth had a cycle of increase after 2006?

I recall you mentioned Perth is pocket within pockets. some had some growth some didn't..

I am using Residex "median" value for houses...though I understood median could be misleading at times, but....

We are knew there was a boom for Perth in 2006. Most suburbs had 30% increase in 2006 alone.

I am using few suburbs that was discussed in this post:

• Mandurah 2006 400k, 2015 325k, total 20% decrease in 10 years
  
• Girrawheen 2006 320k, 2015 420k, total 31% increase in 10 years
  
• Rockingham 2006 403k, 2015 414k, total 3% increase in 10 years
  
• Willagee 2006 450k, 2015 580k, total 29% increase in 10 years

Is this summary/highlight for Perth in general. Over the 10 years of Perth, some decrease 20%, some remain flat, some increased 30%....?

Don't take it the wrong way, as I am genuinely want to get to know Perth
As I look at the median value, it appears the outer suburbs either went backwards or no growth?
I also note Mandurah and Girrawheen median value to switched over the 10 years...

 

There was another growth for many areas that peaked around 12-18mths ago.

I don't think 10yr medians tell enough of the story. If you looked at those suburbs year by year it would be a clearer picture showing when the GFC hit and wiped out Mandurah and that it may have even shown some growth in the past few years, ie wiped out more than 20% and is regrowing somewhat. I still not keen on Mandurah though - just too risky - and volatile as the past has shown.

 

Depends where in Mandurah and which estates...some estates are holding their own.

The real risk is the higher priced suburbs...where a lot of mining related people lived in.

Outer areas like Wellard, Butler whilst down a bit are holding on okay. The rent drops on the 380-450pw stuff has been about 20-30pw.

The stuff between over 650 has taken a pummelling....I can see Perth head north again in 2020....which follows it classic 9-10 year cycle. The down turn in Perth started in 2014...

 

Yes, I was looking a 10 year median year on year basis for those suburbs. I now included the following suburbs for comparison
1. Mount Hawthorn, Westminister, Maylands, Bayswater,
2. Medina, Armadale, Mandurah, Ridgewood,

I only know the better suburbs are in 1, while more low social economic suburbs are in 2.

Looking year on year for the last 10 year, the better suburbs did total 20-30% increase after 2006.
There were bumps and kinks from 2006-2011, but generally a flat line. In 2012-2014, there was a increase about 15-30% for the better suburbs.

For the suburbs in 2, it appears the median value is either same or decreased in value (like Mandurah).. for some of these suburbs we also saw a small increase 2012-2014 but that seem to recover the lost in previous years.

Maybe I am comparing cycles with other States such as Melb and Syd, that looking at a 10 year cycle achieve a significant gain or even double my money.... HTW puts Perth at peak about 6-12months ago...

Do we expect Perth to come out of this retraction/recovery quickly, since overall gain in the last cycle was 20-30%?
What cycle do you anticipate Perth coming? Do we ever going to see Perth repeat of 2006 gains?

 

c

What WM stated is correct.

I believe you need to look at performance/stats each year otherwise you will not get an accurate picture of what has actually occured in each suburb.

Perth market had a mini boom around 2012-2014 (mid), however it was not all markets, sub $500K and then upto $700K most areas. I call this a mini boom, because the boom prior to this started around 2001 - 2006/7, that is a six-seven year boom, unheard of, due to the mining boom, not only resi but commercial also went ballistic.

This is what happened and will give you an account of the last mini boom from SS
Perth property listings - under 9,000 - Somersoft Property Investment Forums

Markets above $1.5M have still not recovered from boom of 2006/2007.
Mandurah in general has still not recovered as there is an oversupply same as South West (Bunbury etc)

This is what Shadow posted, who came up with similar conclusions to you regarding stats, but unfortunately it does not show the full picture, hope this helps
Perth houses are currently as affordable as they were in 2003 and 1996 - Somersoft Property Investment Forums


MTR

 

Just reading Shadow's opening post. nice. It gives me a clearer picture of what happened in Perth.

The 15-30% increase over the 2006-2014 was probably made up of what you called the mini boom in 2012-2014.

BUT the 2001-2006 Perth boom was an eye opener .... I am happy if Perth anticipates half that increase in the next cycle

 

Mandurah is not Perth. It is Peel. Perth being a sprawl Mandurah is often mistaken to be part of Perth.

Perth is falling market. Unless one is skilled at catching a falling knife I would just keep an eye on it for now. That doesn't apply to dev blocks though - there seems to be a general panic to exit the market so may get a better bargain than in a flat market.

Anyone else going to the massive ray white auction in the city in 2 weeks?

 

What's this about auction??? where

The deve sites don't stack up, even if there is still an urgency to buy, not really sure why if its not making any sense. Development sites have fallen back in some area

 

I am thinking about it. Probably will go. We should start a thread.

Auction
16 Dec 2015, 5:30pm
Parmelia Hilton Perth - 14 Mill Street

I don't have a full list of properties, but here are some examples:
17 Norwood Road, Rivervale, WA - Residential House for Auction
242 Surrey Road, Kewdale, WA - Residential House for Auction
House for Auction Kewdale, WA 75 Wicca Street

Scratch that. I found the home page for the auction. 22 properties to go under the hammer in one night.

Real Estate Urban Springs

 

You beat me to it. Yep that's the one. Could be a quick way to get a feel for general market sentiment considering that a wide range of properties are going under the hammer.

 

We should start a pool to bet on how many sell and how many get passed in.

 

i bet most get passed in because we generally don't do auctions in WA

 

.... and auctions in this market??? auctions work well in a booming market not depressed market.

 

No can do. Need to save for a dev

 

Back to what is doing OK in Perth........, surprisingly these apartments are doing very well, only on the market for 1 week?? so far and they have 6 sold and another one signing up this week.

The difference with these they are not the norm, they are good sizes, and very high specification, also they have a show room with full kitchen set up etc. visually helps the buyers. I guess the views also help

3/181 Walcott Street Mount Lawley WA 6050 - Apartment for Sale #121151326 - realestate.com.au

 

How is this:

161 Leach Highway Willagee WA 6156 - House for Sale #120812753 - realestate.com.au
or
137 Leach Highway Willagee WA 6156 - House for Sale #119603491 - realestate.com.au

 

haha wow Mirrabooka has popped up. That's new.
That property is still way to expensive.
Most people who looked at renting my property in Mirrabooka had a least 4 kids and wanted to live close to the mosque.

I purchased my first in 2008 for 300K and just missed out on a bank selling a 4x1 on over 700SQM at auction for $280,000 around 2011/12.

Their was a 3x1 which needed bad interior renovations advertised a few months ago for $340K but it was a cash sale so I couldn't do it.

I've noticed Yokine and Tuart Hill not dropping much, which is weird as it feels like much more is on the market.

 

Leach is bad.
Traffic
Extra build costs due to sound proofing
Don't think you get the higher zoning unless property behind creates a driveway easement as no access from leach hWY.

 

They are very nice. Well thought out, simple yet stylish and perfect for the area.