"PERTH has experienced its strongest winter residential sales season for seven years, new figures show.
Home values across the city jumped by 3.8 per cent throughout the season up to August 26, RP Data figures show.
RP Data senior research analyst Cameron Kusher said Perth’s growth for the year to date (8.3 per cent) was currently leading the nation.
“It is important to keep in mind that winter is usually a slow period for the housing market in Perth,” Mr Kusher said.
“Of course, winter isn’t finished quite yet but if we look at the past five years it is shaping up as the strongest over that period."
Perth's fastest selling suburbs revealed
Values increased by just 0.2 per cent in winter 2012 and fluctuated in 2011 (-3.1 per cent), 2010 (0.2 per cent), 2009 (1.9 per cent), and 2008 (-1.8 per cent).
Perth’s median house price is currently $510,000 and the median unit price is currently $425,000, according to RP Data.
“If the 3.8 per cent growth to-date holds for the remainder or winter, it will be the strongest winter for the Perth housing market since values rose by 10.0 per cent in winter 2006,” Mr Kusher said.
Finding Perth's hidden property gems"
This article was sourced from PerthNow and was written by Claire Bickers.
Friday 30 August 2013
Friday 23 August 2013
"Perth readers say 'no' to local government amalgamations"
"MOST residents across Perth are against the State Government's controversial council amalgamations plan.
More than 2400 people responded to a PerthNow poll on the plan to more than halve the number of councils in the metropolitan area (from 30 to 14).
The question was: Are you happy with the changes to your local council area?
The collated results show relatively narrow margins for approval of the plan in some areas.
The poll voting showed:
Yes 37.2%
No 47.9%
I don't care 14.9%
Within the "super-council'' mudmap, only four areas voted in favour of the mergers however, these included Rockingham, Joondalup and Wanneroo which are being left intact under the plan and are consequently unaffected.
The only region in which a merger was favoured by poll respondents was Bassendean-Bayswater.
Residents across the metropolis are galvanising to voice their concerns with aspects of the merger ultimatum.
Vincent will be holding a second public meeting on Thursday at the Woodville Reserve. It believes its push to be merged entirely with the City of Perth (rather than half going to Stirling) was endorsed by Premier Colin Barnett through the week, if the City of Perth also backed the move.
A public meeting in heritage-sensitive Mount Lawley is being held at the Astor Theatre on Beaufort St on Wednesday, August 28 at 7pm.
Fremantle will hold a community rally at the Fremantle Arts Centre from 2pm on Sunday September 1. A petition is also being compiled.
The area results (in percentages):
Cambridge/Claremont/Western suburbs
Yes 37.6
No 47.0
I don't care 15.4
Stirling
Yes 33.0
No 55.9
I don't care 11.1
Armadale/Serpentine/Jarrahdale
Yes 38.3
No 46.3
I don't care 15.4
Perth
Yes 31.8
No 56.7
I don't care 11.5
Bassendean/Bayswater
Yes 46.0
No 33.0
I don't care 21.0
East Fremantle/Fremantle/Melville
Yes 39.4
No 49.4
I don't care 11.2
Canning/Gosnells
Yes 36.6
No 47.6
I don't care 15.8
Cockburn/Kwinana
Yes 37.7
No 51.3
I don't care 11.0
South Perth/Victoria Park
Yes 34.4
No 54.3
I don't care 11.3
Belmont/Kalamunda
Yes 35.8
No 47.5
I don't care 16.7
Mundaring/Swan
Yes 40.2
No 42.5
I don't care 17.3
Joondalup
Yes 40.4
No 34.2
I don't care 25.4
Wanneroo
Yes 44.6
No 28.7
I don't care 26.7
Rockingham
Yes 50.5
No 29.0
I don't care 20.5"
This article was sourced from Perth Now and was written by Mara Fox.
Friday 16 August 2013
"Beware the mother of all housing booms"
"If we are not very careful Australia is going to have the mother of all dwelling booms. What we are seeing is a three-pronged boost to prices. First is a dramatic push to lift the demand for dwellings by banks offering cut mortgage rates thanks to Reserve Bank Governor Glenn Stevens. But second, and just as importantly, there is reluctance by banks to fund new supply.
In any commodity if you inflate demand and squeeze supply, prices go through the roof.
Thirdly taxpayers will subsidise the boom via a massive increase in the use of negative gearing via both personal and superannuation tax breaks.
Longer term, that will damage the economy and the Reserve Bank will have to take responsibility for pulling the price boom trigger. The market accepts further interest rate cuts but surely the Reserve Bank board members will now have second thoughts about future cuts.
To understand what is now happening, let’s go back to basics.
Where do you put your money? Glenn Stevens has priced bank deposits out of the market for long-term savers who want a fair return. Unless banks are once again prepared to go abroad for their money it means that there will be no abundance of long-term bank deposits, although there will be plenty of short-term money.
The sharemarket has delivered great returns but a large number of people have been burned in the last five years and brokers are no longer excited about value in the market. In this low interest rate environment shares will do well but that is not where the big money is going to go.
Australians are going to rush for bricks and mortar as they always have in situations like this. And when they see the market about to rise they just jump in. In Sydney, real estate agent John McGrath told a mortgage brokers' conference that the city's inner city property demand was “red hot”, although in Melbourne there is a fair amount of supply in the market. Melbourne, along with Brisbane, will quickly follow, although perhaps not with the same intensity.
Most of the demand will be from investors, including those using their self-managed funds, plus the Chinese. First home buyers will obviously contribute at the lower end.
When you see a rush of demand, what you need is supply. Given that the main demand is in inner city areas supply takes a long while to generate. Banks are reluctant to lend to developers – especially given recent failures – and the approval process is very slow.
In addition, the capacity of the building industry has been curbed by the slump and many have been forced out of business. The tax office and the banks played a big role in this.
All the conventional signals told Glenn Stevens he should lower rates. Yet if Tony Abbott wins the election we are going to see a surge in plant investment because the political crisis has held people back. The August rate cut will have had no effect. Because we are dealing with existing properties, an inner city boom does not boost employment until developers can fund and gain approval for new projects. Of course, when it spreads to outer suburban areas then it does boost employment.
At some time (not in the short term) Glenn Stevens will be forced to address the inner city property boom which he triggered in August 2013 – probably by increasing interest rates at an inappropriate time.
Negative gearing may also be curbed."
This article was sourced from Business Spectator and was written by Robert Gottliebsen.
In any commodity if you inflate demand and squeeze supply, prices go through the roof.
Thirdly taxpayers will subsidise the boom via a massive increase in the use of negative gearing via both personal and superannuation tax breaks.
Longer term, that will damage the economy and the Reserve Bank will have to take responsibility for pulling the price boom trigger. The market accepts further interest rate cuts but surely the Reserve Bank board members will now have second thoughts about future cuts.
To understand what is now happening, let’s go back to basics.
The sharemarket has delivered great returns but a large number of people have been burned in the last five years and brokers are no longer excited about value in the market. In this low interest rate environment shares will do well but that is not where the big money is going to go.
Australians are going to rush for bricks and mortar as they always have in situations like this. And when they see the market about to rise they just jump in. In Sydney, real estate agent John McGrath told a mortgage brokers' conference that the city's inner city property demand was “red hot”, although in Melbourne there is a fair amount of supply in the market. Melbourne, along with Brisbane, will quickly follow, although perhaps not with the same intensity.
Most of the demand will be from investors, including those using their self-managed funds, plus the Chinese. First home buyers will obviously contribute at the lower end.
When you see a rush of demand, what you need is supply. Given that the main demand is in inner city areas supply takes a long while to generate. Banks are reluctant to lend to developers – especially given recent failures – and the approval process is very slow.
In addition, the capacity of the building industry has been curbed by the slump and many have been forced out of business. The tax office and the banks played a big role in this.
All the conventional signals told Glenn Stevens he should lower rates. Yet if Tony Abbott wins the election we are going to see a surge in plant investment because the political crisis has held people back. The August rate cut will have had no effect. Because we are dealing with existing properties, an inner city boom does not boost employment until developers can fund and gain approval for new projects. Of course, when it spreads to outer suburban areas then it does boost employment.
At some time (not in the short term) Glenn Stevens will be forced to address the inner city property boom which he triggered in August 2013 – probably by increasing interest rates at an inappropriate time.
Negative gearing may also be curbed."
This article was sourced from Business Spectator and was written by Robert Gottliebsen.
Friday 9 August 2013
"Laidback and loving it"
"The city has a sense of grittiness that suits its bohemian young residents, writes Samantha Hutchinson.
Just 30 minutes drive from Perth, the historic port of Fremantle offers heritage architecture and a laid-back, creative culture with a prime location on the West Australian waterfront at prices more attractive than the inner city.
A city with strong working-class roots (the mascot of the local AFL team, the Fremantle Dockers, is a giant dock worker) and migrant bohemian influences, Fremantle has retained a sense of grittiness that makes it an attractive destination for hip, innovative restaurants and retail spaces, and a magnet for your professionals.
Little Creatures Brewery has installed itself in a converted industrial shed on a fishing wharf, and epitomises the blend of heritage architecture, industrial roots, and modern styling that is quickly becoming the city's defining feature.
Fremantle is serviced by a rail line linking it with Perth, putting commuters within easy reach of jobs and services, while retaining quick access to the Perth waterways, the ocean, and Rottnest Island off the coast.
"Everyone goes there for restaurants, cafes and the entertainment. There's great shopping too," Hegney Property Group principal Gavin Hegney says. "It can also be a bit of an alternative area, which some people really like."
Market Overview
The popularity of the area with owner-occupiers, as opposed to investors and speculators, has shielded Fremantle market prices from the same peaks and troughs that were experienced throughout Perth, particularly during 2005-2006, but some of the newly built properties in the area have suffered steep devaluations after being bought for record prices at market peak.
Australian's Port Coogee Marina residential development injected fresh stock into a market dominated by small workman's cottages and limestone homes built at the turn of the century.
The marina's homes, including waterfront apartments, townhouses, and stand-alone houses, hit the market between 2--7 and 2010, fetching prices up to $3.45 million. Hegney says it is not uncommon to see many of the development's top-selling homes now fetching around $1.5 million.
The median price for the area currently sits at $756,917, slightly down from $777,208 in 2011. This compares with the $1.7 million in the beachfront suburb of Cottesloe, closer to Perth, and $1.01 million in Perth.
Who buys Fremantle is most popular with professional couples who don't have children, according to RP Data.
The predominant age group in "Freo", as it is called by the locals, is 2 to 34 years, with owner-occupiers making up about 52 per cent of the local population.
The Notre Dam university campus in Mouat Street is one of the area's strongest drawcards for renters, who occupy about 45 per cent of the area's properties.
But homes in the area's elevated streets, with price tags well into the millions, are attracting more professionals with families.
Space Realty agent Toby Astill says proximity to the water attracts sailing enthusiasts.
"A lot of people get particularly attached to the area because it's close to a whole bunch of yacht clubs," Astill says.
In focus
Located in one of Fremantle's highest streets, the four-bedroom home owned by Keywaters director Mark Franklyn has views across North Fremantle to the harbour and the ocean.
The newly built house has several balconies to take in the views and the ocean breezes, while a pool makes the most of the northern aspect.
It is expected to sell for more than $2.4 million."
This article was sourced from the Australian Financial Review and was written by Samantha Hutchinson.
Just 30 minutes drive from Perth, the historic port of Fremantle offers heritage architecture and a laid-back, creative culture with a prime location on the West Australian waterfront at prices more attractive than the inner city.
A city with strong working-class roots (the mascot of the local AFL team, the Fremantle Dockers, is a giant dock worker) and migrant bohemian influences, Fremantle has retained a sense of grittiness that makes it an attractive destination for hip, innovative restaurants and retail spaces, and a magnet for your professionals.
Little Creatures Brewery has installed itself in a converted industrial shed on a fishing wharf, and epitomises the blend of heritage architecture, industrial roots, and modern styling that is quickly becoming the city's defining feature.
Fremantle is serviced by a rail line linking it with Perth, putting commuters within easy reach of jobs and services, while retaining quick access to the Perth waterways, the ocean, and Rottnest Island off the coast.
"Everyone goes there for restaurants, cafes and the entertainment. There's great shopping too," Hegney Property Group principal Gavin Hegney says. "It can also be a bit of an alternative area, which some people really like."
Market Overview
The popularity of the area with owner-occupiers, as opposed to investors and speculators, has shielded Fremantle market prices from the same peaks and troughs that were experienced throughout Perth, particularly during 2005-2006, but some of the newly built properties in the area have suffered steep devaluations after being bought for record prices at market peak.
Australian's Port Coogee Marina residential development injected fresh stock into a market dominated by small workman's cottages and limestone homes built at the turn of the century.
The marina's homes, including waterfront apartments, townhouses, and stand-alone houses, hit the market between 2--7 and 2010, fetching prices up to $3.45 million. Hegney says it is not uncommon to see many of the development's top-selling homes now fetching around $1.5 million.
The median price for the area currently sits at $756,917, slightly down from $777,208 in 2011. This compares with the $1.7 million in the beachfront suburb of Cottesloe, closer to Perth, and $1.01 million in Perth.
Who buys Fremantle is most popular with professional couples who don't have children, according to RP Data.
The predominant age group in "Freo", as it is called by the locals, is 2 to 34 years, with owner-occupiers making up about 52 per cent of the local population.
The Notre Dam university campus in Mouat Street is one of the area's strongest drawcards for renters, who occupy about 45 per cent of the area's properties.
But homes in the area's elevated streets, with price tags well into the millions, are attracting more professionals with families.
Space Realty agent Toby Astill says proximity to the water attracts sailing enthusiasts.
"A lot of people get particularly attached to the area because it's close to a whole bunch of yacht clubs," Astill says.
In focus
Located in one of Fremantle's highest streets, the four-bedroom home owned by Keywaters director Mark Franklyn has views across North Fremantle to the harbour and the ocean.
The newly built house has several balconies to take in the views and the ocean breezes, while a pool makes the most of the northern aspect.
It is expected to sell for more than $2.4 million."
This four-bedroom house for sale is on one of Fremantle's highest streets.
(Deb's Note: This property, featured in the original article, is 23 Herbert Street, North Fremantle. For more information on this property, please click here.)This article was sourced from the Australian Financial Review and was written by Samantha Hutchinson.
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