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Perth land up $40,000 to be most expensive of Australian capital cities; THE median price of land in Perth has skyrocketed by $40,000 over the past year.
Topic Started: 1 Oct 2014, 05:51 AM (3,381 Views)
Black Panther
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Perth land up $40,000 to be most expensive of Australian capital cities

THE median price of land in Perth has skyrocketed by $40,000 over the past year.

Figures from REIWA show that in September 2013, the median price of land was $240,000 but as of this month, the price has risen dramatically to $277,780.

Perth now has the most expensive land per square metre of the capital cities and analysts say a “perfect storm” of factors are driving the hikes.

Professionals chief executive Shane Kempton said the growing prices were being precipitated by first home buyers as well as upgraders who were taking advantage of low interest rates to build a new home.

“We are already seeing the values of established homes in areas such as Safety Bay, Warnbro and Waikiki rising because of rising land prices in nearby Baldivis,” Mr Kempton said. “A similar trend is also occurring in the northern suburbs in areas such as Clarkson and Mindarie.

“Overall, the outlook for the residential land market in Perth remains positive with WA’s strong population growth continuing to underpin the long-term demand for new homes.”

RP Data says it has been noting the escalation in land prices across Australia.

Over the past year capital city land prices have increased by 6 per cent, senior research analyst Cameron Kusher revealed this week.

With the supply of vacant residential land limited — and the size of land lots reducing — land prices will continue to rise, Mr Kusher predicts.

“The high cost of vacant land continues to inflate the overall cost of housing,” he said.

RP Data statistics show Perth has recorded the greatest change in median land price in 12 months of the capital cities, at 7.5 per cent.

Next is Adelaide at 7.3 per cent and Sydney follows third at 5.2 per cent.

http://www.perthnow.com.au/realestate/news/perth-land-up-40000-to-be-most-expensive-of-australian-capital-cities/story-fnhlgriw-1227075202536
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newjez
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... And some people still say the fhb grant doesn't inflate prices. Switch fhb grant to new builds, and land goes up. Who would have thought?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Black Panther
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newjez
1 Oct 2014, 06:14 AM
... And some people still say the fhb grant doesn't inflate prices. Switch fhb grant to new builds, and land goes up. Who would have thought?
If you think that is the reason for Perth land prices surging up, then you clearly dont understand whats happening in Perth.

Edited by Black Panther, 1 Oct 2014, 06:25 AM.
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Nicke
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Baldivis is semi rural for crying out loud, you're looking at cherry picked statistics pushed up by the sale of expensive averages. Go out to the hills of perth where it's hot and unattractive and you'll see a different story. People buying beach or near beach property always pay a premium.

http://www.google.com.au/search?q=Baldivis+acreage+blocks&btnG=Search&nomo=1&hl=en-AU&biw=&bih=&gbv=1
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newjez
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Black Panther
1 Oct 2014, 06:24 AM
If you think that is the reason for Perth land prices surging up, then you clearly dont understand whats happening in Perth.
I know exactly what's happening in Perth. My dad was a property investor when I was a kid. My brothers and I have all invested in property in Perth. This has all happened before. You fly by nighters just don't seem to get it.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Nicke
1 Oct 2014, 07:32 AM
Baldivis is semi rural for crying out loud, you're looking at cherry picked statistics pushed up by the sale of expensive averages. Go out to the hills of perth where it's hot and unattractive and you'll see a different story. People buying beach or near beach property always pay a premium.

http://www.google.com.au/search?q=Baldivis+acreage+blocks&btnG=Search&nomo=1&hl=en-AU&biw=&bih=&gbv=1
This is what many fail to understand when looking at house price stats, everywhere.

With Perth for example, there have been many old fibro shitboxes knocked down over the last few years andreplaced with brand new houses costing 500k on top of the intial price outlay. This is what pushes medians up even though that same out shitbox is still worth the same. This is same ALL over Australia, more so in Sydney and Melbourne but rampant lately in Perth.

So this pushes up the median price for the area even if that same old shitbox has not yone up 1 cent in value. It could also push up the median price even if that shitbox has dropped in value.

Now considering all this, and Perth has gone nowhere for years , it means prices are coming down already, and with a 100 year mining boom and the cheapest interest rates in history. Now with job losses and wages in decline, less people coming in, record building going on and rental vacancies going through the roof and set to continue once more building is completed along with more jobs losses. More rental declines. Investors will be bailing out fast before much longer.Only a fool cannot see the end result.

Perth and WA is a ticking timebomb, STAY WELL WELL AWAY.

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Jimbo
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Black Panther
1 Oct 2014, 06:24 AM
If you think that is the reason for Perth land prices surging up, then you clearly dont understand whats happening in Perth.
What's happening in Perth is that low interest rates and the tight rental market of a year ago have led to a surge in demand for new properties. This increased demand has led to developers and investors buying any land they can get their hands on cash in.

However, the slowdown in mining has led to a slowdown in immigration and a slackening of the rental market.

Near me there is a block right next to the beach that has sat vacant for over ten years. It was bought by a local investor and developed into a duplex pair. He has them on the market as rentals at $550 a week each and after six weeks he still has no interest. A year ago they would have been snapped up but $550 a week is too high now. Maybe $400 would be closer to the mark today.

The simple fact is that the surge in demand for land is leading to an increased supply of housing stock just as the WA economy begins to face major headwinds from the mining slowdown.

Even REIWA are predicting a bear market for 2014/2015 and when the main vested interest body predicts falling prices, you know know there must be something in it.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Black Panther
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newjez
1 Oct 2014, 08:45 AM
I know exactly what's happening in Perth. My dad was a property investor when I was a kid. My brothers and I have all invested in property in Perth. This has all happened before. You fly by nighters just don't seem to get it.
Exactly ? :tu: :lol
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Bardon
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Just got board approval to enter into a heads of agreement to acquire a Perth business, the seller separately owns the three workshops. I told the seller yesterday when we presented our offer to him that he shouldn't forget that he would have a secure landlord paying his rents if he accepted.
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Black Panther
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Jimbo
1 Oct 2014, 09:21 AM
What's happening in Perth is that low interest rates and the tight rental market of a year ago have led to a surge in demand for new properties. This increased demand has led to developers and investors buying any land they can get their hands on cash in.

However, the slowdown in mining has led to a slowdown in immigration and a slackening of the rental market.

Near me there is a block right next to the beach that has sat vacant for over ten years. It was bought by a local investor and developed into a duplex pair. He has them on the market as rentals at $550 a week each and after six weeks he still has no interest. A year ago they would have been snapped up but $550 a week is too high now. Maybe $400 would be closer to the mark today.

The simple fact is that the surge in demand for land is leading to an increased supply of housing stock just as the WA economy begins to face major headwinds from the mining slowdown.

Even REIWA are predicting a bear market for 2014/2015 and when the main vested interest body predicts falling prices, you know know there must be something in it.
At worst Perth may dip slightly and then trend up again strongly.

Keep screaming chicken little all you want.

It wont make any difference.

Perth Land prices up prove you wrong. The RE market here is still solid.
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