"The good, the bad, and the ugly of Perth according to the experts"

An artists impression of the "game changing" Perth City Link (City Square, Wellington Street) Source:The Sunday Times

FAD housing trends of the past are being phased out and buyers are increasingly conscious of architecturally designed spaces, architects say.

And while good design does not necessarily have to be reflected in building costs, it will add to the sale price.

Australian Institute of Architects WA president David Karotkin said an Australian architectural identity had emerged.

Drawn from the modernist movement of the 20th century – a period of minimalist design with strong lines – the style had evolved to suit the Aussie love of outdoor living and the provision of protection from the harsh environment, Mr Karotkin said.

Any style that did not respond appropriately to Perth’s climate and lifestyle needed to be phased out, he said.

‘‘Thankfully oversized Tuscan villas with no shading and limited outdoor lifestyle features seem to be going out of fashion,’’ Mr Karotkin said.

Iredale Pedersen Hook director Adrian Iredale, jointly up for several national architecture awards this year for the West Kimberley Regional Prison, said home styles such as Tuscan, Corsican or Greek Islands, devalued the original architecture and contributed to an identity crisis for some suburbs.

The architects said well-designed spaces added value to homes

‘‘Good architecture creates healthy living and working spaces with lots of natural light, intelligent planning of spaces, passive-solar principles, healthy material selections and the like,’’ Gresley Abas Architects co-director Philip Gresley said.

‘‘People like living and working in pleasant spaces and are therefore willing to pay a higher price.

‘‘In saying this, good architecture should not necessarily cost more.

‘‘Simply arranging spaces on the block to control the ingress of sun and breezes can make a massive difference at no additional cost.’’

Mr Gresley said younger people were more design conscious and wanted developments that were different and contemporary, while being functional and ‘‘liveable’’.

‘‘These qualities are becoming more desirable and commanding a higher price,’’ he said.

Mr Karotkin said a well-designed home would last for the life of the building and result in lower maintenance or renovation costs, as well as increased resale value.

‘‘While lifestyles and fashion will continue to change, really good design has qualities that are timeless and will add value for many years.’’

The Good, the Bad and The Ugly, according to Perth architects:

Philip Gresley, co-director Gresley Abas Architects

AREAS TO WATCH

"Northbridge - it brings lots of activities within a short walk from home – an increasingly desirable commodity not available in outer suburbs. 

"East Perth, Leederville, North Perth, and Inglewood are also areas to watch."

PERTH NEEDS MORE

"Designs that provide quality spaces rather than a quantity of spaces are vital, and adopting passive solar design principles is now generally a no-brainer."

GOOD PUBLIC SPACES

"Central Park, the Cultural Centre revitalisation and Brookfield place."

NEED A FACELIFT

"The question is how to unlock all the empty upper-level spaces in heritage buildings.

"There is so much opportunity for creative solutions, but the city is stuck behind inappropriate building and planning controls.

"Perth also needs to deliver a diverse range of development. 

"We are in danger of creating an overly shiny retail-based city."

FUTURE VIEW

"The city is about to become a very vibrant, inhabited, and highly walkable environment."

Adrian Iredale, director of Iredale Pedersen Hook

AREAS THAT WORK

"Coolbinia contains a large number of 1950s modernist houses designed to embrace Perth’s climate.
 
"The suburb’s part-circular arrangement creates numerous fragments of land that are occupied by surrounding residents in often innovative ways. 

"Floreat, City Beach and Dianella also contain numerous 1950s and ’60s homes and a concentration of Iwan Iwanoff homes."

AREAS TO WATCH

"The more interesting areas are generally small, inner-city sites or city and coastal fringes.

"Warehouse conversions and strata properties are attracting the adventurous."

NEEDS A FACELIFT

"Northbridge requires some love and care. 

"One should look to Beaufort St and Vincent St for inspiration, or the recent restoration and development of the buildings next to the State Theatre."

PERTH’S BEST

"QV1 and 140 William Street, for their engagement to the street and surrounding buildings, and sustainable design principles; Council House and the Perth Concert Hall for their civic power; and the State Theatre and Perth Arena for giving Perth two valid and  completely contrasting forms of architecture."

PERTH’S WORST

"The private developer-driven apartment towers along the east end of the city. 

"They continue one line of monotony.

"Overall, we have progressed from the ‘toddler’ stage of design and are now entering our teenage years. 

"The only question is when will we reach maturity?"

David Karotkin, Australian Institute of Architects WA president

AREAS THATWORK

"Garden suburbs developed in the ’50s, such as parts of City Beach, Floreat and Coolbinia. 

"What appeals to me is the network of landscaped parks and streetscapes, plus the modernist houses, many of which have similar materials, palettes and design elements.

"The result is a consistency that is missing in many of Perth’s suburbs where house designs often seem to compete for attention."

AREAS TO WATCH

"Anywhere around transport hubs, including established areas around existing train stations, such as Maylands."

FUTURE VIEW

"Fremantle is a wonderful city that has suffered from stagnation over the past 10-15 years. 

"There are signs this is changing, with the local council determined to create a planning environment that encourages investment. 

"The proposed Kings Square redevelopment project will be a major stimulant for the city centre."

PERTH’S BEST

"We still have many excellent examples of Victorian architecture, such as the Perth Town Hall, mid-century modernist buildings like Council House and the Perth Concert Hall, as well as world class contemporary buildings – the State Theatre Centre, Perth Arena and Brookfield Place."

PERTH’S WORST

"There are several large buildings in the city from the ’80s and ’90s that do not provide amenity for the public at ground level."

Kelly Rattigan, Formworks Architecture managing director

AREAS TO WATCH

"North Fremantle, South Fremantle, Northbridge and the surrounding areas."

LESS, PLEASE

"Large, single dwellings that hug the block. 

"For single residential, we should move towards a smaller building footprint with bigger outdoor areas, move our back gardens to the front and create livelier streets."

MORE, PLEASE

"Smaller single or grouped housing, well-designed multi-residential units with good access to daylight and shared courtyards, and facilities close to transport and adjacent to, or above, retail areas such as in the Claremont Quarter."

PERTH’S BEST

"The Perth Cultural Centre. It provides activities for all ages as well as a great venue for different types of ‘pop-up’ events."

NEEDS A FACELIFT

"Fremantle, Fremantle, Fremantle!"

PERTH’S BEST

"Perth Arena, the Art Gallery of WA and Central Park."

This article was sourced from PerthNow and was written by Claire Bickers

"Prices down, rents down; Perth's trend of decline continues"

"Initial analysis by the Real Estate Institute of Western Australia for the September quarter indicates that the declining trend in Perth’s median house price as reported over the past two months has continued.

Median price

Real-time sales data by REIWA members is showing a 2.8% fall in the metropolitan median with Perth now showing a median of around $508,000 for September, down from the revised June quarter median of $522,500.

The data is not surprising given strong first home buyer activity at the more affordable end of the market pulling down the median. However, with first home buyer activity starting to slow I expect the decline to turn around in the December quarter.

Sales turnover

We reported 2001 sales in the month of September and even though that figure is up by 13% on the same time last year, it’s a drop of 4% in sales since August.

The south-east part of metropolitan Perth is the only area with significant sales movement where more affordable homes in Gosnells and Armadale are attractive to buyers. Turnover jumped by 8 and 12% respectively.

We also saw a modest lift in turnover in the western suburbs, northern Joondalup and the north eastern part of Wanneroo, however, this was based on small sales volumes.

Areas with weaker sales turnover included the northwest area of Wanneroo (down 21%), Bassendean and Bayswater (down 19%), and the cities of Swan and Canning, both down 9%.

Listings

There were 8,693 properties listed in September, down by 6% on August and down 16% on last year.

Of the properties for sale 7,527 were dwellings and showed a drop of 5% on August, while 1,166 were blocks of land, down by 6% on August.

Rental market

REIWA data also show that the rental system is cooling with median rents dropping by around 1% as the metropolitan vacancy rate rests at a normal 3.1% of available properties.

We now have around 3,843 rental listings in the market place which is down by about 6% over the last three months but still well above the same time last year at 81%.

Within this context the median rent has dropped back to $470 per week, or around $475 for a house – down by $5 on the June quarter and $450 for a flat, unit, apartment or villa – down by $10. REIWA data is now highlighting the expected fall in rents anticipated in several sub-markets.

As REIWA has previously predicted, the rise in the vacancy rate is now seeing a softening in rents in a number of areas.

Rents coming down

Median rents have come down by $10 per week in Bayswater and Bassendean, $15 in Fremantle, $22 in Melville, $30 in the City of Perth, $25 in South Perth and Victoria Park, $20 in Vincent, $25 in the western suburbs, $23 in Mundaring, $20 in north-west Wanneroo, $10 through northeast and southern Wanneroo, $10 in Cockburn and also $10 in Rockingham.

Vacancy rates

Around 65% of vacant rental properties are broadly within a 10km radius of the CBD and that this central sub-region witnessed a decrease in listings during the September quarter.

However, some sub-markets such as Bassendean-Bayswater, Belmont and South Perth-Victoria Park saw increases in listings of between 5 and 16% for the quarter.

In the eastern part of the City of Stirling, places like Joondanna, Yokine and Tuart Hill saw an increase in listings of around 5%."

This article was written by David Airey, president of the Real Estate Institute of Western Australia. This article was sourced from REIWA.

"The top five killer features your home should have"

"

Property experts say extra bedrooms offer flexible lifestyle options.Picture source: Wikimedia Commons, by Todtanis

"HOMEBUYERS and renters value a good neighbourhood above any other property feature, a new survey has found.

Nearly 70 per cent of respondents made this selection in a recent Aussie Home Loans questionnaire.

The results were generally in line with what professional valuers consider to be the property features which add most value to a home.

A modern kitchen was the third most sought-after feature, appealing to 63.4 per cent of respondents.

This was pipped by that man haven and all-round storage space, the garage (63.7 per cent).

More than half said they were on the lookout for big bedrooms, airconditioning and a modern bathroom.

Lifestyle features such as a swimming pool (11.3 per cent) or a home cinema (3.9 per cent) were a long way down the wish list.

The main factors that deterred buyers were tobacco odour (67 per cent), a busy street location (65.8 per cent), a dirty interior (61.6 per cent) and noisy neighbours (60 per cent).

Herron Todd White Perth managing director Brendon Ptolomey said location was the biggest factor in determining a property's value.

For example, a 4x2 in Peppermint Grove was not going to be the same value as a 4x2 in a new estate.

After location, valuers would rank modern kitchens, modern bathrooms, parking spaces, alfresco areas and extra bedrooms as the biggest value add-ons for a home, Mr Ptolomey said.

"There is a massive emphasis on kitchens from the market place," he said.

"People are much more aware of what's in there, and they're aware of features like the size of the oven or finishes like stone benchtops."

Extra features added to a kitchen's value, but storage was a bigger factor.

Valuers would rank a garage further down the list, but in newer suburbs an enclosed garage could add between $20,000 and $30,000 to a property, Mr Ptolomey said.

The number of bathrooms also added value. He said valuers were seeing more homeowners put in a third bathroom.

"It could be a powder room with a shower, or a laundry with a shower," he said.

"People tend to want to shove teenagers down the end of the house."

A second bathroom added more value than a third, however.

A second bathroom is almost essential in today's market, according to experts.
Picture source: Wikimedia Commons, by Lavanda Green.

"A second bathroom is almost essential in today's market," Mr Ptolomey said.

Parking space could also increase the value of a property.

"The closer you get to the city and the more difficult it is to park, then it can add anything from $20,000 to $50,000,'' Mr Ptolomey said.

"We certainly see a difference in value between one and two-bay apartments in the city."

A patio upgrade could virtually be relied on to lift the value, provided the job was well done.

"There are not too many homes without an alfresco it's pretty important to the market," Mr Ptolomey said.

"It can be a massive selling point."

Valuers said it was difficult to judge the dollar benefit of an extra bedroom.

"There's no perfect formula - you can't say a fourth bedroom will add $10,000 to a property," Mr Ptolomey said.

"But they always get used as a bedroom or a study, or most often as the junk room."

But he said living area was vital and the space taken up by a fourth bedroom might be at the expense of a lounge room.

Curtin University property studies professor Andrea Constable said bedrooms were also subject to the "law of diminishing returns'' - a fourth bedroom would be likely to add value but a ninth bedroom probably would not.

REIWA president David Airey said storage was an underrated influence on value.

"We are living in smaller households but accumulating more possessions," Mr Airey said.

"Homes with plenty of storage space are likely to be more valued."

But extra features, such as swimming pools or outdoor kitchens, were likely to be an overcapitalisation.

Mr Ptolomey said a swimming pool could cost $30,000 to put in and add only $15,000 to the property's value.

Top 5 killer features

Well designed kitchens with quality features are an increasing priority for home buyers.

1) Kitchen 
"A well-designed, functional and spacious kitchen with quality draws and cupboards, benchtops and appliances is an increasing priority for home buyers.'' - David Airey

2) Bathrooms 
"The market values a second bathroom and toilet or ensuites very highly due to the convenience and privacy they offer.'' - David Airey

3) Parking
"The closer you get to the city and the more difficult it is to park then it can add anything from $20,000 to $50,000.'' - Brendon Ptolomey

A good undercover al fresco area is one of the top priortities for buyers and can add real value to a home.

4) Undercover al fresco area
"We see everything from a BBQ shoved under a patio to an extensive outdoor kitchen, under patios with high ceiling fans. It can be a massive selling point.'' - Brendon Ptolomey 

5) Bedrooms 
"Many homes today are occupied only by one or two people. Regardless of this shrinking household size the desire for larger homes remains strong and the market tends to put higher values on four-bedroom houses and three-bedroom apartments. Extra bedrooms offer flexible lifestyle options such as a home office or guest room.'' - David Airey"

This article was sourced from PerthNow and was written by Claire Bickers.

"Nero fiddles in the US while the Reserve Bank does a balancing act at home"

"Well, the shutdown continues in the US, though as it is the middle of the night there, no further news yet. The markets seem to believe that this will only last a few days before some temporary resolution appears, but having got this far the Republicans seem determined to extract some political benefit, and the trigger could be the threat of a US default by October 17. This was referred to by Paul Ryan, who said “we think the debt limit is the forcing mechanism, that’s what we think will bring the 2 parties together.” Well at least there is talk of bringing the parties together.
Meanwhile the US dollar has started rising as investors start moving liquid funds in anticipation of higher interest rates in the US, which has seen our dollar fall half a cent in the last day.
Apart from the fact that nearly a million people are effectively out of a job, little else is happening, and the nation has turned to humour to pass the time.
One Republican joke, taking a dig at Obama, goes “Rumor has it that a pile of toys has been found on the White House lawn, believed to have been thrown from a pram”.
While the Democrats respond with “got to love Team America”.
Donald Trump said “It is crucial for Republicans to remain united during this shutdown”. Oh wait, that wasn’t a joke.

Picture SOURCE: SCMP.COM

Meanwhile, back in Australia we are digesting the latest update by the Reserve Bank, in the light of housing price trends. While the headlines in the news is of increases in house prices, this is really only true of Sydney and Melbourne, which both saw increases of about 2.5% in the past month.
Elsewhere, with the possible exception of Adelaide, prices actually fell during September, a month which is normally one of the strongest in the year.
Feedback from our valuers, in Sydney in particular, paints a picture of a boom market, particularly at the lower end, and perhaps the need for higher interest rates to curtail the price increases.
However, in other markets the picture still seems to be one of weakness.
The market for residential land and new houses is a case in point. Residential building approvals actually decreased 4.7% in August and the trend in dwelling approvals growth remains weak. This does vary from state to state. New South Wales was the only state to record actual growth in dwelling approvals in August, while Victoria posted negative monthly growth for the 13th month in a row.
Growth in most states has been offset by declines in Victoria and Tasmania. While demand may increase in most states, an eventual cyclical upturn is expected to be weaker than in previous cycles. The poor outlook for high density housing construction in Victoria is expected to weigh on that market in particular.
Somehow, the Reserve Bank is supposed to make sense of all this and fix a level of interest rates that slows down New South Wales while stimulating growth elsewhere, but the interest rates tool is too blunt to fine tune like that. So this explains why interest rates are unchanged at the present time, since they are okay on average, even if some markets are too hot and others too cold."

This article was sourced from propell.com.au