The signs are there, if the auction clearance rates are anything to rely on. According to Home Price Guide, last week's figures were 24% for Perth auctions, compared to 100% clearance rate a year ago.
Hard to say yet...its a bit patchy. I think the sales around the median are definitely slowing, but at the top end of town ( $750k to $1.0 mil ++) its still hot. Auctions have never really been that popular in WA, with most being sold by private treaty. Latest has been 'by tender' or 'expression of interest' as the agents were having trouble keeping up with the increasing prices, but now that the frenzy is over, I am sure we will be back to private treaty as these other methods start to falter. I'm in Perth next week so it will be good to get a feel to what is happening on the ground. First indicator will be the taxi driver, to see if he is buying rental 'investment' properties...LOL !! I heard recently that there are still many would be investors who are keen to keep buying property but with the pice around $450k for a spec 4 bed 2 bath in a new subdivision ( and a rent return of approx $250 pw !!), they are now starting to look elsewhere ( such as Brisbane) where you can get something similar for $300 to $350k and a better rent return. Just my thoughts.. KEvin
perth overvalued! I can tell you now that Perth is overvalued compared to the rest of the country! You have lower socio economic areas asking nearly $400k for a 3 x1. and the rent just won't cover any expenses. Just because the state is booming people are listening to the panic by the papers here and people just started buying anything they could. If you can buy a brand new 4x2 in Cairns for $300k why would you come and buy here in WA. It is harder to sell now as people don't have the money especially First Home owners. Investors are not silly they know it is unusually trending up so they are going elsewhere!
all I know is that things are staying on the market for a lot longer than they were even 6 months ago. You used to look at realestate.com.au and everything was under offer, not so anymore!
hi all as we all know the market does move in cycles and travels around the country one goes up and the others correct. the problem with wa market if you can call it a problem is that so much infrastructure is still to go in so I think the market will correct just not yet. the areas that will correct are the areas away from the mining and infrastructure projects but the areas north of perth I think still have along way to go. in the other states we don't have the commodity requirements and thats whats holding up the market but I think that the areas around perth will correct as they have reached there correct market rate. the interesting areas are the other areas out side of perth. the demand is there or will be there. my .002
What infrastructure are you referring to here, GR, and which parts? Would be interested to hear more...
Road, rail, tunnels, bridges and wharves Jacques. Its all state govt. spending on improvements. Mostly around the Perth metropolitan areas, but also in some regionals such as Geraldton, Carnarvon, Dampier, etc. The govt is running huge surpluses from royalties, and state govt taxes, and are ploughing it back into public works. I reckon we have a 20 year catch up to go. Kevin
hi kevinh yes you are spot on there is a huge amount of infastructure on the boards to go in and you need to find where it is due to go in and see whats there currently. I don't wish to give to much away and it is public access information but there are some very large projects that have green lights at the moment but haven't started yet
