Hi all,
Just a quick post regarding the latest and *interesting* article i saw in The West..
PERTH land Prices increased 55% thats four (4) times faster than the median house prices during the last year.
AND
Supply is barely keeping up with demand..
Maybe LANDBANKING has some merit , some investors i know have done well on land alone. Prices are still rising here in WA [wink2]
Bright start to 2005 for Perth real estate
Sellers continue to dominate Perth’s residential real estate market, according to the latest monthly sales results from REIWA.COM.
The ratio of sales to new supplies of properties for sale in Perth’s established housing market was 78% in February 2005. This represents an increase of two percentage points on the ratio in January. The ten year average sales to new listings ratio in Perth is 55%.
REIWA.COM processed 2,400 residential property sales in Perth during February.
REIWA President Greg Rossen said the sales to new listings ratio has consistently been above 70% since 2002. “This is an indicator of continuing high levels of confidence in Perth’s real estate market.”
“Affordable properties are selling quickly and this is contributing to shortages in stocks of properties for sale, particularly in the investment and first home buyer markets.”
“The average selling time for residential properties in February 2005 was 48 days, which is three days fewer than January.”
“The REIWA.COM results are also a good indicator of likely price movements. The high sales to listings ratio and the continuing shortages of properties in the affordable markets suggest that Perth median house price will continue to rise in the March quarter of 2005.”
“The continuing buoyant real estate market in WA is defying a national slowdown and it is indicative of the robust State economy.”
“The REIWA.COM results were also taken before the rise in interest rates in March, however more recent information suggests that the rate rise did not significantly dampen housing activity”, said Mr Rossen.
REIWA will release the March quarter 2005 median house price results in late April 2005.
Story added by: Lino Iacomella on Thursday, March 31, 2005
The above article can be found in House Prices“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorPerhaps I am misunderstanding the ‘sales to listings’ statistic, but doesn’t
The ten year average sales to new listings ratio in Perth is 55%.imply that 45% of houses listed for sale in the last decade have either been withdrawn from sale or are still listed? Or by ‘average’ do they mean median?
Can anyone explain this to me?(please speak slowly![blush2])
Cheers, F.[cowboy2]Redwing,
I didn’t read anywhere in the article that the land prices have increased 55% in the past year ?? Are you quoting some developer figures out the back of Butler and just to the right of Baldivis ?? Is there a bit of the article that you haven’t attached ??
Foundation – the rolling statistic quoted is just a ratio of new listings coming in the door and sales going out the door. The turnover would be almost 100% of the stock as time progressed, with some months sales figures being higher than previous months listing figures etc…eg sales for Jan and Feb might be treble what the listings are for June and July.
I take all averages and statistics with a very large grain of salt, especially when they are generated from a cosy little club purporting to represent fully paid up REA members for there own exclusive use and manipulation of the data.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
the rolling statistic quoted is just a ratio of new listings coming in the door and sales going out the door. The turnover would be almost 100% of the stock as time progressed, with some months sales figures being higher than previous months listing figures etc…eg sales for Jan and Feb might be treble what the listings are for June and July.That’s what I would have thought – the statistic over the long term should be close to 100%, but the ten year average is just 55%! Where did the other 45% of listings go?
The Reiwa website offers no clues.
Redwing, can you explain the stats?
Ps – The Reiwa website says that Perth house prices increased by 8.4% last year, and if you subtract the increased cost of building due to demand, land prices must have increased less than that again – not quite 55%?
Cheers, F.[cowboy2]Hi Redwing, last article I read in West about 1 month ago, it was 30%, amazing what can happen in one month.
I find it hard to take any article too seriously, especially in current climate, in particular when person(s) have a vested interest in talking it up.
I personally would not buy land over (land & house) which will provide income, unless the land was unique, ie beachfront, prime city location.
Regards, M
Sorry folks my mistake in not fully explaining the post; the first portion is from an article in Saturdays West Australian paper
Hi all,
Just a quick post regarding the latest and *interesting* article i saw in The West..
PERTH land Prices increased 55% thats four (4) times faster than the median house prices during the last year.
AND
Supply is barely keeping up with demand..
Then a personal commentMaybe LANDBANKING has some merit , some investors i know have done well on land alone. Prices are still rising here in WA
All in blue is from REIWA, posting is funny sometimes, as you know what you mean [blink]
The other 45%…Dunno ??“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMARISA
Im Pro IP’s, however, i know many people who have done well with land..look at areas such as BRIGHTON (spelling?)since it was established.
Agree with it having to be unique.
Friends bought prime landin Port Bouvard and mandurah some ears back..$$
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing
I agree, many people have made exceptional returns purchasing land in WA, South West has also done very well as you would know. I am in process of purchasing land in SW pocket, and will build as soon as possible.I was referring to holding land for the longer term and whether this growth would be sustainable.
There are many speculators in the market purchasing land without titles and then selling on. It will be interesting to see what happens over the next year. I personnally am hoping that it will continue to soar.
Due to the resource boom, immigration factor, Perth seems to be sitting well at present.
Regards, M
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