Perth Pricing just Stupid!

That’s 160K of course….
By the way, we bought our house in Nov 2004, it is a low set brick/tile, 3 bedroom (Small ones) no built ins, small lounge and dining plus kitchen.. The block is big (709) and it’s a corner block. The area is extremely central and if it was not for the people around here this area would be worth a fortune…
Romina[strum]

Like some others have stated here, I see no sign of the Perth housing boom slowing for at least another 12 months. Even then I’d be surprised to see anything other than a minor correction before things settle back into “normal” historical growth patterns.

The thing that is hard for eastern staters to understand is that unlike most other states, WA has only a handful of regional cities – Geraldton, Mandurah, Bunbury, Albany, Kalgoorlie and some fast growing sizable regional centres – Broome, Karratha, Busselton, Margaret River, Esperence, Northam. Most of what is left in the state are “blink and you’ll miss it” small, far flung towns. The resources boom is bringing people to the state in droves (I recall seeing projections of 90,000+ expected each year for the next 5 years or so) and most of the big resource and mining companies opt for fly-in-fly-out workforces rather than the expense of setting up mining towns. Generally FIFO is from Perth, Geraldton or Broome. So basically if you come to live and work in WA most people are going to base themselves in Perth or within 2 hours drive. It is simple supply and demand.

Inevitably the market has to slow as work opportunities for migrants dries up as the new resource projects reach their workforce quota and the building industry catches up with the backlog of new houses/units (currently construction time for a new house is around 18 months). But IMHO I don’t see that happening anytime soon and it will be a gradual slowing rather than a “bust”.

Regards,

Flatout.

on the highway between Hobart and Devonport. There are probably other Perths in other states as well though.

WA in general is going Gangbusters with many Regional Areas outperforming Perth Suburbs

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My sister and her husband, who reside in Sydney, just flew into Perth last night and are scheduled to fly back to Sydney on Tuesday morning. Their intention over the weekend is to purchase another house and evict a scabby residential tenant who is 5 weeks behind in his rent…..no surprises there !!!

The reason they came across though, is that they have been surfing the net and putting in offers, but two conclusions have already surfaced…..# 1 is the stock being put on the net is the leftovers that the agents can’t shift within a few days, and # 2 is the leftovers are being snapped up so quick, the offers that they are putting in are being ignored constantly.

Looking at the constant trouble they are having with PM’s / residential houses and tenants who promise the world and don’t deliver….I suspect this shall be their last residential purchase, ‘cos we usually have a chat over a BBQ. She’s finally starting to like the sound of tenants who don’t whinge, pay everything, improve the place at their expense and stay for a decent length of time.

The resource boom not only has a flow on effect for housing the workers…..if you move much closer to the source of the action, companies also need to supply a work environment and a place to keep all of their machinery…..we are finding moving closer to the source of the action actually improves returns and lowers the risk at the same time……due mainly to the long term leases currently being signed, which should ultimately carry you through anything that may happen in the next 4 to 8 years…..

I know it’s further than 20 klms but try around Rockingham/ Safety Bay. Just bought brand new 4×2, AC etc. $369k 500 mts to Palm Beach and there have been some other very good ones on the market.