According to a recent study only 7.1% of Australian capital cities have suburbs with a median house price under $300,000. The data is based on property sales and not median prices but does show the lack of affordable housing in some areas.
I sell a lot of property in Wanneroo a suburb were you can get property for under $300,000. So if you are looking for some affordable housing Wanneroo and its surrounding areas is a great place to start.
I sell a lot of property around the Banksia Grove and Wanneroo area. Recently I have started to notice an increase in the number of low commission or discount real estate companies. They come into an area advertising heavily that they can sell your property for a very cheap fee (some as low as $5,000!). Just be aware that a lot of times these companies have numerous extra costs to those fees. So for example they might advertise a selling fee of $6,000 but then they will charge $200 for every home open and charge you for the final inspection. Once you start adding up these fees it can get very expensive.
The other thing to factor in is what marketing plan they are providing for this discounted fee. In a lot of cases there marketing plan will not be strong as the other companies. For example i can get you on 19 different Internet real estate websites, 6 Major shopping centre locations and have 2 exclusive buyer matching systems. If these other companies cannot offer you this then you will not be getting extra exposure to buyers and hence this will reduce your overall sales price.
Also you should factor in the experience that the sales consultant has. Some of them discount because they are new and do not have the same level of experience and skills as other agents.
So overall i am not saying you should not sell your property with these companies just that you should be aware of what they are offering in relation to other agents and make sure you are comparing agents on the overall package they can offer not just on who has the lowest commission.
REIWA has just released its latest figures for the Perth property market for the December 2010 quarter.
Perth median house price was $480,000 which is a drop of 1.8% from the September quarter of $489,000.
Average days on the market for the December quarter was 77.
Median House Prices Per Suburb:
Ashby$465,000
Banksia Grove $381,000
Carramar $506,500
Hocking $485,000
Pearsall $489,500
Sinagra $462,000
Tapping $500,000
Wanneroo $397,000
For more detailed information on your suburb please email me
Now is a perfect time in the property cycle for first home buyers to consider purchasing their first home. When doing this first home buyers should focus on properties sitting on large blocks of land. It is the land component of property that appreciates in value whereas the building is the part of the property that depreciates in value. With a shortage of land and block sizes getting smaller investing in older properties on large blocks will mean faster capital growth. In some suburbs such as Wanneroo you get the potential of the land being rezoned for subdivision down the track which would lead to even greater capital growth potential.
Despite the current doom and gloom regarding the Perth real estate market, land prices have increased 1% during the September quarter (according to Urban Development Institute of Australia UDIA). Sales volume has remained steady during the September quarter but has risen 10% this year.
This is a good sign for the Perth real estate market as strength in land prices provides good stability in the market and is a positive indicator for the market. If the land component of property is growing then house prices will have to rebound as blocks are then deemed as overpriced compared to the properties. This will occur once people realise they can buy an established house for below the replacement cost if they were to purchase a nearby block and build.
Top 5 Areas for Block Sales:
1) Swan 495 lots
2) Wanneroo 472 lots sold
3) Rockingham 224 lots sold
4) Cockburn 194 lots sold
5) Armadale 136 lots sold
Copyright © 2012 Oliver Searles