Hi There, I have recently built and moved into Aveley – a new a private estate next to Ellenbrook in WA. As I often keep my eye on what's going on in the area, I noticed an unusual situation occurring in Aveley. There are currently 36 brand new properties on the market of which I would suggest a good 90% of them are by build/sellers. When the land in Aveley was first released, many property investors/developers saw the opportunity to do some build-sell projects. Now that they are all getting completed, they all seem to be on the market at the same time, and needless to say there is an abundance of brand new properties that are all moving very slowly as there are so many beautiful new homes for buyers to choose from. Because of this – and the obvious financial strain on alot of families having to pay more than one mortgage, many of these properties are now being sold way under market value just to get rid of the burden – which in turn is forcing the whole suburb to drop dramatically in price. To top things off, not alot of people have heard of Aveley, so if they choose to move into this neck fo the woods, they will look under Ellenbrook or Henley Brook, therefore making the suburb even more quiet. I just thought I would mention this to you guys as it may be a good opportunity for some of you to buy an investment property that's way under market value and to make money from it in the near future. I have no doubt what-so-ever that Aveley will be beautiful once completed with parks, shops etc… which will in turn get the prices back up to where they should be. It may be worth checking out. Good luck and let me know if any of you purchase in this area.
Thanks Bonnie, I know where you are talking about as I was considering area in first release. I'll take a look. How have you found living in the area so far? Linda
Hi Linda, We moved here from Ellenbrook (ha ha huge move I know) but we're really loving it. We're looking forward to the parks and a few more front yards getting completed to add to the greenery of the suburb but on the whole it's nice to be in a suburb where every single home is brand new. The neighbours are all really really friendly as well which certainly makes it a nice place to be. Let me know if you find anything worth buying. For what it's worth, I know of a couple of really ridiculous offers that have been accepted by some desperate sellers lately. Good Luck!
For what it's worth, I know of a couple of really ridiculous offers that have been accepted by some desperate sellers lately. quote] Bonnie can you be more specific in what was offered and accepted please ? Thanks
Bonnie said "really ridiculous", so I assume that means sub-$350k? Even at that price I'd be a little concerned because Aveley is almost completely surrounded by paddocks and scrub with development potential…
Half a million for a house on ave size block on the outskirts of Perth – I'm sure this will only be the beginning of a price correction.
That's what my gut is telling me too. Now that the heat has gone from the market, it would be possible for a developer to turn a profit by developing adjacent land for $100k per block and for a builder to turn a profit by building houses (that are identical in every way to those priced at $550k for under $200k. That is, it is entirely conceivable that the fundamental value of those houses is around $300k to $350k and that the other $200k was a speculative premium paid by novice investors essentially competing against eachother.