house price will increase by 40 percent, page-34

Hi,

Perth metro prices are moderating, but you have to remember that there is massive migration from tradesmen from the eastern states to WA. Jobs are plentiful. Population growth is driving prices (also true for QLD).

Perth outer suburbs are weakening, and have been weak for a while. First home-owners were forced to these suburbs, paid high prices, and are now selling because they can't afford to live there.

Someone mentioned Darch. About 4 years ago you could buy a block of land for 100K, and build a decent house for about 130K. That 230K house+land is now "valued" at 600K. This is bullsh.t because Darch doesn't have big blocks by Perth standards and is a long drive into the city. There are other suburbs in Perth much better located transportwise (rail+freeway), with bigger blocks, which are cheaper than Darch. However - these established areas do not command that 'new house' premium that Darch has.

Someone mentioned Quinns Rocks. Used to be a working class outer suburb (still is). Prices skyrocketed and are now coming back down. Would be a long (and expensive) drive into work from Quinns Rocks, even though it is a coastal suburb. Who says coastal property always goes up?

Mandurah - the most common thing I hear about this is that nobody lives in the expensive houses. They are owned by self managed super funds. Someday the geniuses that put the houses into their super are going to figure out that you can't eat bricks and people don't want to rent mansions. Pure speculation at its best - and I think the oldies are going to get burnt here. What makes it worse is you can't live in it if its owned by your super.


There is at least 8 years construction work left up in northern WA. RIO wants to triple output. They need to build new minesites, ports, and rail. This will fuel labour demand.

For this reason, well located Perth suburbs should do well. QLD is driven not just by commodities, but tourism, and booming infrastructure. SA is seeing investors come in because prices are 'low' compared to the rest of Oz. As for NSW and VIC ... prices were driven by speculation - there is no commodities boom, and population is not increasing. What makes the VIC number plates driving around WA quite hilarious is their catchphrase "On the Move".


Joel