Fantastic Capital Growth in WA

<KS>

<KS>

I just finished reading the property liftout from the Sunday times and all I can say is GO W.A!!

Hows this for 12 Month results:

Karawara = up by 70.8%
Jane Brook = up by 35.6%
Medina = up by 30.5%
Oakford = up by 33.3%
Busselton = up by 33.5%
Dunsborough = up by 29%


Not to mention DOZENS of other Perth Suburbs which topped the 20%+ scales.

Call the market what you want but with areas still performing like this in what is supposed to be a 'flat market' I am envigorated towards buying another property in 8 months time (when my current project finishes!).

<KS>
 
Hi KS,

Are you able to provide any further insights.
I am from the ACT and am having trouble finding more info (have looked on the website and found a one-page article)
Thanks,
kidders
 
<KS> said:
I just finished reading the property liftout from the Sunday times and all I can say is GO W.A!!
Click to expand...

Does it mention other country areas?

Here are my guesses:

- Geraldton up 15 - 20% (cheaper suburbs higher)
- Kalgoorlie up 5% (older cheaper houses dragging average down)
- Bunbury up 20 - 25% (cheaper suburbs higher)

Would be interesting to see how accurate these are!

Rgds, Peter
 
Bunbury

Properties in Bunbury are increasing 10% between purchase and settlement time (about two months)
Dalyellup is around 30% to 40% with each land release averaging around 10% increase.
30 famlies per week moving in the Bunbury area putting a big demand on rental.
With the build time a for standard house up to 18 months rents are on the increase.
25% less houses for sale than the same time lst year. Supply and demand youve just got to luv it

Bring it on.

The question is when will it stop.

Peter
 
madmurf said:
Properties in Bunbury are increasing 10% between purchase and settlement time (about two months)
Dalyellup is around 30% to 40% with each land release averaging around 10% increase.
30 famlies per week moving in the Bunbury area putting a big demand on rental.
With the build time a for standard house up to 18 months rents are on the increase.
25% less houses for sale than the same time lst year. Supply and demand youve just got to luv it

Bring it on.

The question is when will it stop.

Peter
Click to expand...

The quarter following the next round of interest rate rises :eek:
 
Hiya,

Just had a flick thru the report at the metropolitan suburbs stats. Was comforting to see there werent many suburbs in single figure growth %ages :)
 
This is what we were seeing in the Eastern States in the last few years.

I wonder if it is just the lag effect?

What do you think?

Cheers,
 
probably a lag. with the cheapest median price in the whole of Australia, economy going crazy and decent population growth plus building costs going up by the day, it was really a one way bet which way prices would go. still plenty of steam left in it too.
 
Not so loud!

<KS> said:
I just finished reading the property liftout from the Sunday times and all I can say is GO W.A!!

Hows this for 12 Month results:

Karawara = up by 70.8%
Jane Brook = up by 35.6%
Medina = up by 30.5%
Oakford = up by 33.3%
Busselton = up by 33.5%
Dunsborough = up by 29%


Not to mention DOZENS of other Perth Suburbs which topped the 20%+ scales.

Call the market what you want but with areas still performing like this in what is supposed to be a 'flat market' I am envigorated towards buying another property in 8 months time (when my current project finishes!).

<KS>
Click to expand...

Sssshhhhhh, KS. We'll be inundated by wise men from the east!!!!! :D

Cheers
 
Ausprop said:
probably a lag. with the cheapest median price in the whole of Australia, economy going crazy and decent population growth plus building costs going up by the day, it was really a one way bet which way prices would go. still plenty of steam left in it too.
Click to expand...

Nicely put Ausprop

My theory for a long time now is that WA is about 6 years behind the eastern states.

Given the east is about 12-18 months into a flat/decline period I would say the WA market will be good to us for about another 3-3.5 years before growth slows.

Even then I dont think it will be impossible to find a good deal because of the sheer volume of costal towns that are doubleing in size every 5 years.

I mean Mandurah is now the fasting growing place in the whole of the country.....nuff said

<KS>
 
Spiderman,

Madmurf is on the money. I have watched the Bunbury market very closely for the last 18mths.

I know a year ago Real Estate agents were telling potential buyers if they weren't willing to buy sight unseen they had another 7 - 8 investors that would.

I know one area of Bunbury a year ago you could buy a 3 x 1 for $145k now you would be lucky to find anything under $180k (that 20% at best) - other areas have done even better!

I bought land (contract signed Apr 2004) and have a house ready to be finished in Mid April - House and Land Costs -$167k Agent reckons worth at least $220k. Have a PM who says that I would get around $230 p/w for it.

Good to hear there are locals like you Madmurf that know the potential of Bunbury as it seems theres alot of W.A. investors who have been pre-occupied with Mandurah, Busselton, Margaret River etc. They've already missed some big gains. They thought Bunbury was still a sleepy town.

Large lot sizes (sub divide), lots of older houses (renos), lots of new land releases (build), coastal areas and newer suburbs - so theres a range of options.

madmurf - "Supply and demand youve just got to luv it"

ditto

Regards

Keen :D
 
Glen Iris, Australind, Eaton?

Hi Keen,

Good to hear things are moving fast there....

Is Australind a viable place for renters - given it's distance from the centre of Bunbury?

What about Glen Iris? ? -

I have been casually watching the Bunbury market for the last 4 months and I can attest to the great growth that is being achieved - Doh!

Cheers


:eek:
 
the.j,

a year ago I got desperate to prove to myself that I could own a positive cash flow property - but didn't want to buy in areas where I thought there would be little growth.

I search up and down the coast - Esperance to Karratha. I didn't want to out lay too much - this being my 2nd IP.

I arrived at either Bunbury or Geraldton - as they were coastal and rent yields were higher than here in Perth.

I heard that there was an abondance of rentals in Geraldton - plus I thought Bunbury had a better chance of growth as it was closer to Perth and between two growth areas - Mandurah and Busselton.

On my bugdet I looked at Carey Park, Withers, Glen Iris and Usher. They also had better rent yields at the time.

The 1st two were older suburbs so there was little chance of much depreciation being claimed - but I did feel there would be growth.

Glen Iris and Usher had good rent yields and had quiet a few houses built that were under 6 years old.

I picked a block in Usher because it was much more coastal and I felt it had a better chance of growth.

As when ever the market takes off rent yields are left behind. However they have risen in my area by about $20 p/w in the last year - perhaps more - but still not up with prices. I'd say in some places you could get a little over 5.2% p.a. - it used to be over 6%.

I can't say much on Australind as I concerntrated mainly on Bunbury, but I believe it too has yet to reach its fullest potential. A year ago a Real Estate agent told me that Australind was a viable for renting as anywhere else in the area - but that may have been a sales pitch! I do recall at the time rent yields were a little lower than my contenders and the places older.

As for Glen Iris I think I read it had one the lowest growth rates probably because it isn't coastal and is perhaps viewed by locals as a little further out of town at this point in time, but I don't think this has effected its appeal to the rental market. Madmurf may be able to verify.

I'm thinking of buying again in Bunbury as I believe theres still some short term growth and that its a good area long term to buy. I will be ringing around to get a better feel for rent returns and if I can buy into the market as a year ago everything sold so quickly.

I'm happy to go against my diversify policy and buy in Usher again - but as I always do - I'll have a little looky before I dive in.

Will try and keep you posted - but it will be in a few weeks time. Feel free to PM me as I can be forgetful. :eek:


Regards

Keen ;)
 
the.j said:
Is Australind a viable place for renters - given it's distance from the centre of Bunbury?
Click to expand...

It's about 10 min from Bunbury by car and bus services have been upgraded in the last year, so it could be OK.

Rgds, Peter
 
Trivia

Thanks for the replies - the Bunbury search has been a little more challenging since the API mag article (at least by my reckoning!) :rolleyes:

Looking at a map, Australind looks as though it has everything going for it as a lifestyle choice - waterway, a little way out of the big smoke, just as far to drive to Worsley if you're in that line of work..

Quoted from my dusty old UBD Street Directory - Western Australia Cities and Towns 7th Edition 1996-
...a coastal resort and dormitory suburb of Bunbury...
...site of an ambitous but unsuccessful land settlement scheme in the 1840's..

Cheers
the.j
 
Hiya,

I know some people who live in Australind. They rent down there. It was almost impossible to find a place last time they looked for one. I'd say the rental demand / supply was great, I dont know anything about the growth there tho.
 
The apple falls further from the tree than you think. The wise men from the East or the throbbing market in Perth. Could it be time to think further than the metro back yard? How about what happened in:

Newman 42.1% Way north of Perth
Hopetoun 35.7% Way south of Perth
Boyup brook 35.6% Somewhere in WA

What about what could happen in Esperance? I don’t know why Ravensthorpe Nickel Project (RNO) would be worth $1.4 billion. But maybe something is likely to happen to the Esperance property market, since BHP wants some houses for their key employees and back up staff. The Gallop government singed an agreement to share costs for infrastructure in order to avoid the fly in fly out culture of the Pilbara and keep the $$$$$$$$ local. Esperance has been experiencing a 0.3 vacancy rate for a few years and getting tighter. Just a thought.
 
the.j said:
It looks like BHP Ravy flow on has already been factored into Esperance prices - Nulsen even!
Click to expand...

I haven't been to Nulsen, but it's an asbestos housing commission area, like Rangeway in Geraldton.

A relative was there last week and picked up a FS list. Even allowing for the small number (2) of REAs in Esperance, the number of houses in Nulsen seemed disproportionately high, with numerous fibro houses advertised for under $100k.

One REA's site suggests that the vacancy rate is so low that it's impractical to have rental lists. Another vacancy figure I saw was 0.3%.

What little I know about rents there indicate that, like other non-mining WA regional cities, they are fairly low (eg $120 - 135pw), at least for the cheaper houses.

So if there is a shortage, then it doesn't appear that it translates to demand for houses in Nulsen.

Though it's a lovely town with a stunning coastline, prices to me don't look undervalued like (say) Geraldton was in 2003 and Bunbury compared to Busselton or Mandurah.

Also whereas Geraldton/Kalgoorlie/Albany are about equal in population and in the urban hierachy, Esperance is a rung below. With a growing population of around 15000, it is generally regarded as a sub-regional centre, playing second fiddle to distant Kalgoorlie for facilities and services.

Nevertheless there's enough there for it to be attractive to 'sea changers', that is if they are willing to travel between two and four times as longer from Perth as competitors such as Busselton, Albany and Dongara/Geraldton.

Provided you're happy with the mediocre yields and limited choice of PMs Esperance could do well long-term.

Regards, Peter
 
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