NKSK version 2

Sunday Times today - Halls Head - 13.9% drop in prices in the March quarter.

Jesus- pity those migrants who bought in the last 6 months and decide they want to go back home.

Same article says that an apartment at Mandurah Marina was on the market for $2million last year - still on the market but now for less than $1 million.

NKSK version 2

"Perth house prices will never drop"- too much migration/mining/wealth..." etc etc

NKSK version 2

Just found this as well....

WA housing market finally feels the pinch
August 02, 2008
THERE'S an inclination for people from the eastern states to think of Western Australia in terms of lucrative mining contracts, surging job opportunities and a state attracting streams of eager job hunters from across the country.

That is all true, and many people are doing very nicely in the west, but the state's economic fundamentals haven't been enough to stop house prices falling.

The median house price in Perth has been falling ever since it reached a peak of $475,000 at the end of last year.

According to the Real Estate Institute of Western Australia the metropolitan median house price fell by $14,000 in the March quarter. Preliminary results show prices have fallen further, with the median Perth house price now $446,000.

REIWA president Rob Druitt says the first signs of weakening emerged in late 2006 as part of a natural market correction following huge rises in previous years.

But the state's market is now also being hit by weaker consumer confidence in the overall economy, interest rate uncertainty and high petrol prices.

The falls are across the board, and include the prestige suburbs.

"The June quarter shows that this slump is found right across the metropolitan area and also that the regions have gone backwards a little too," Druitt says.

According to researcher Australia Property Monitors, Perth median house prices fell 2.8 per cent in the three months to June -- the biggest fall of any capital.

Western Australia was not alone, with house prices in all capitals except Adelaide falling in the quarter, APM says.

REIWA data for June shows that median house prices for Mandurah and the Greater Bunbury region, south of Perth, dropped by 7 per cent.

House prices in the towns of Geraldton and Greenough -- about 400km north of Perth -- fell by 9 per cent while prices in Kalgoorlie, the mining centre about 600km to Perth's east, fell by around 5 per cent.

There were 17,200 properties on the market in Western Australia in June, down 2 per cent on March, including 2450 blocks of land. A normal market is about 13,000 properties.

That's not to say there aren't any buyers. It's just they are looking for the right price and first homeowners may find they can now afford something.

But, importantly, Druitt says the large number of properties for sale has punctured the myth of a housing shortage.

"In WA we have a situation of oversupply -- not a problem with undersupply -- and this is due to the strength of building activity between 2001 and 2007," he says.

Speculative building was a characteristic of the boom. Many Perth homeowners subdivided suburban blocks to take advantage of the prices.

But building has been so strong that despite soaring population growth in recent years, the once-tight vacancy rate -- a measure of the number of rental properties available on the market -- has now returned to normal.

There is now a 3 per cent vacancy factor, which REIWA calls "comfortable".

New properties have flooded into the rental system as investors have found it difficult to sell.

Despite this, rents did rise in the June quarter by $10 a week to a median of $350 a week for a house and $320 a week for a unit.

But tenants now have more choice -- something they have not experienced for a long time.

Perth's market looks likely to be sombre for a while.

Earlier this year, forecaster BIS Shrapnel predicted poor growth up to 2009-10, after which increased affordability and strong wages growth would see prices rise in 2010-11.

DrWho

It's happening everywhere at different levels... 6.75% drop in the last 12 months where we are... and plenty more to come...

BATS666

As someone who's been planning on moving to WA (Mandurah) for about a year now (and will do in Nov), I'd say the 14% drop in prices is about right. There are many houses in that area that have been on the market for over a year and $100K drop on houses in the $650-750K price bracket is not unusual (tho what they actually sell for may be even lower).
The marina property down from $2M to under $1M is a new one on me. I keep abreast on realestate.com and have have not seen that one, so would take it with a pinch of salt. However, one developer had a 3 bed waterfront townhouse reduced from $1.75M to $1.25M back in April and I think it's still on the market. It was already overpriced by the developer (according to the agent, who valued it in 2007 at $1.45M) and I know he was desperate to sell, so it may be down to $1M . And with more marina apartments coming on line, over supply is now a genuine problem. Add to that the lack of investment interest, given that values are coming down, and all is set for a price plummet in the near future. I can see a few developers going under as a consequence.
We will certainly be in no hurry to buy until things settle in a year or two altho we would love a house of our own.
Just have a flat to sell in the UK...which is where the real problem may lie for us !! Can't rent it out (lease bar) and the local market is flooded with apartments...especially new build/investment properties.
Best of luck y'all !

BATS666

where's that ? Gallifray ??

DrWho

Gallifrey has perfectly stable house prices. We realised long ago that confusing money making schemes with homes to live wasn't a very good idea...!

Unfortunately my current terrestial location of Mona Vale on Sydney's Northern Beaches hasn't been so fortunate...!

BATS666

Gallifrey ??? I knew I'd spell it incorrectly !!

Hotton

I Believe Perth house prices have climbed 300% over the last six
years so i think 14% is a drop in the South china sea

ossigeno

A 300% increase over six years is the same as a 75% decrease. So only another 60% to go, at current rates that will take about another 12 months.

BATS666

I would point out that I got this 300% figure from only one specific example. Our visa agent moved to Perth (from the UK) in 2001 and bought a house in Attadale for $400,000. It was valued in 2007 at $1.2M. It's almost certainly worth less than that now, tho some of the more sought after suburbs are still holding there values. Outer suburbs are now 10-30% less than last year (e.g one oceanfront plot in Mandurah now asking $600K when similar plots were $900K last July....some are still asking $900K!!)
Other anecdotal evidence indicates at least a doubling of values over this period (2001-2007).

Hotton

Mate it was intended to be sarcastic about the 300%, but hay if the shoe fits
but perth was the poor relation to Sydney for donkeys but in them years
the house prices in perth rocketed to near on par ,thats quite spooky
could it be the mother of all corrections

BATS666

Sarcastic but true in some circumstances. Perth went from 4th most expensive to 2nd only to Sydney in just a few years. And when you see the prices for some of the ruins, you do wonder why !

lastere

if china keeps shutting smelters at the pace they have for the last 3 months, perth might be the mother of all crashes in 6 months. federal help might be necessary.

in other news, the audacity of hope among humans is
scientific research worthwhile:

"Earlier this year, forecaster BIS Shrapnel predicted poor growth up to 2009-10, after which increased affordability and strong wages growth would see prices rise in 2010-11"

Vash the Stampede

Correct. Prices in Adelaide rose by 16.2%, defying the trend just ever so slightly...