I guess you are talking about houses here? I'm wondering if there will be an oversupply of highrise units.
Perth property listings - under 9,000
- Thread starter Ausprop
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I guess you are talking about houses here? I'm wondering if there will be an oversupply of highrise units.
I was talking about everything - try buying a new office in west perth at the moment! do you think there has been a lot of high rise? been a bit down near the hyatt (or the Merlin for the older folk!)
I guess there isn't really that much. I know there is still not much work around for big jobs in construction that my hubby usually does. By the sounds of it, it should pick up in a couple of months.
http://www.realestate.com.au/buy/in-perth,+wa+6000/list-2?newOrEstablished=new
http://www.realestate.com.au/buy/in-perth,+wa+6000/list-2?newOrEstablished=new
I would like to just hose down a bit of this hype. It is bull to state everything is hot. The cheaper end of the market has been flat or down for the last 4 years only since this time last year has there been a pick up. The under $500k bracket is being driven by investors and migrants buying rather than building. New home builds are abysmal and no big supply coming. The so called boom is patchy some high priced properties, some suburbs are still selling for less than they did in the last boom. There is a very good pick up in demand and prices will rise but too early to be calling a boom it is looking great thou.
Yup very low construction starts for the last 12mths and the 12 mths before that.
That has impacted on the number of available properties - Perth population has grown but the number of houses hasn't.
Those that start the H&L now will probably finish in 9-12mths. So we might see some easing then - if they are able to get a block
I don't think anyone said we were back to the boom prices of 2007 - just that prices were on the rise for many areas.
TBH I don't want a ridiculous rise, I'd just like some gentle sustained growth. Rapid growth and rapid 'correction' is hard on the economy, it's much better for the majority if its capital growth of around 5% a year, rather than up 18%, down 13%
Its not a boom, but I don't know what this is, all my properties in Girrawheen have risen by 20% in 6 months and I believe still rising as there is little/no stock available.
I too would prefer slow and steady so I continue to purchase some great deals and not continually have to fight the herd.
I would argue that this is the reason that house prices may be picking up - demand is increasing (reflected in the increased median rents) & no new stock coming on to the market.
I never thought I would use a Buyers Agent, however the property market is moving too quick for me to personally source a property for myself (currently living interstate sure doesn't help!) - atleast at a good price!
Edit: Just noticed that Westminister beat me to the comment about lack of new house builds spuring on growth - doh!
HI All
This is what happened this w/end, spotted a development property last Wednesday, RE agent would not take any offers prior to home open on Sunday.
There were 8 offers on the table, we placed cash offer $20,000 above asking price, this would still provide 20% profit on the deal.
Just found out there were 2 higher offers, looks like FHB, parents funding the deal
We thought we had a pretty good chance, but all deve sites are hot property at the moment.
See what this week will hold.
MTR
This is what happened this w/end, spotted a development property last Wednesday, RE agent would not take any offers prior to home open on Sunday.
There were 8 offers on the table, we placed cash offer $20,000 above asking price, this would still provide 20% profit on the deal.
Just found out there were 2 higher offers, looks like FHB, parents funding the deal
We thought we had a pretty good chance, but all deve sites are hot property at the moment.
See what this week will hold.
MTR
I heard a similar comment today from a buyers agent. He believed that it would (and is already starting to) flow to the +$600k properties - though it is definitely the lower end which is walking (running) out the door.
Hopefully it will last another 12 months
I heard a similar comment today from a buyers agent. He believed that it would (and is already starting to) flow to the +$600k properties - though it is definitely the lower end which is walking (running) out the door.
Hopefully it will last another 12 months
Maybe, but I just don't understand this market, is it sustainable??
Market sentiment is picking up and when you get positive news everyone jumps in. However, my gut tells me it will fall back as affordability is the real issue.
At the same time I think if you can secure a property now in an area which is rising you will do well. There are many hot areas which will continue to grow.
MTR
Affordability is a function of interest rates and servicing obligations.
In Hong Kong properties are far less affordable than any suburb you can imagine in Australia, average salaries are also abysmal. Yet they continue to go up. In the short to medium term, it's all about sentiment and near-term affordability. At one point, at 1% interest rates, money was free. Even if you borrowed $10m you only pay $100k interest.
Which I guess is what you're saying, is it sustainable? Look you're probably right - something has to give eventually. Either it'll crash, stagnate until rents/salaries catch up etc. In the mean time though, I only care about making money and doubling my equity at 80% gearing, which simply requires a 20% price increase. Not hard in this type of market.
In Hong Kong properties are far less affordable than any suburb you can imagine in Australia, average salaries are also abysmal. Yet they continue to go up. In the short to medium term, it's all about sentiment and near-term affordability. At one point, at 1% interest rates, money was free. Even if you borrowed $10m you only pay $100k interest.
Which I guess is what you're saying, is it sustainable? Look you're probably right - something has to give eventually. Either it'll crash, stagnate until rents/salaries catch up etc. In the mean time though, I only care about making money and doubling my equity at 80% gearing, which simply requires a 20% price increase. Not hard in this type of market.
HI All
This is what happened this w/end, spotted a development property last Wednesday, RE agent would not take any offers prior to home open on Sunday.
There were 8 offers on the table, we placed cash offer $20,000 above asking price, this would still provide 20% profit on the deal.
Just found out there were 2 higher offers, looks like FHB, parents funding the deal
We thought we had a pretty good chance, but all deve sites are hot property at the moment.
See what this week will hold.
MTR
what suburb were you looking at?
agree with development sites being hot at the moment.
MTR was that a house in Heathridge u bid on?
If not ill share a story from a couple weeks back
Avg house in heathridge listed on a monday couple weeks back. what makes it special was it was in the proposed r50 zone. block was nth rear with not unworkable sewer lines & as mebntioned a house that could rent for low 400s pw.
House was listed at 425 by an out of area agent. shouldve been more like 450 so of courae this woildve drummed up interest.
That tuesday agent sent me offer form which had an explicit condition from owners that thered be no home open before sunday & no offers accepted before then. agent reiterated this on the phone to me.
Ok.
...Thursday i get a call saying someone did a drive by and offered significantly more than asking price with cash offer, and its so good the owners have accepted it and wont do a home open!
Hmm! will b interesting to see what it sold for. the agent played it perfectly advertising it under price, creating competition resulting in a high cash offer to beat the crowd lol.
If not ill share a story from a couple weeks back
Avg house in heathridge listed on a monday couple weeks back. what makes it special was it was in the proposed r50 zone. block was nth rear with not unworkable sewer lines & as mebntioned a house that could rent for low 400s pw.
House was listed at 425 by an out of area agent. shouldve been more like 450 so of courae this woildve drummed up interest.
That tuesday agent sent me offer form which had an explicit condition from owners that thered be no home open before sunday & no offers accepted before then. agent reiterated this on the phone to me.
Ok.
...Thursday i get a call saying someone did a drive by and offered significantly more than asking price with cash offer, and its so good the owners have accepted it and wont do a home open!
Hmm! will b interesting to see what it sold for. the agent played it perfectly advertising it under price, creating competition resulting in a high cash offer to beat the crowd lol.
