REIWA
Rentals
2325
REIWA
Vacancy Rate
1.1%
Average
Rent
$450
The State of the Real Estate Market
Over the last quarter in Perth we’ve seen the supply and demand numbers remaining constant. Only 8,400 properties are currently listed for sale (9100 this time last year) and sales are sitting at approximately 875 per week.
To buyers, these may sound like good numbers but it means that their expectations are changing. Buyers believe that due to the two latest interest rate increases of 0.25% and 0.5%, things will start to cool. If supply was high and increasing (as it was in 2008) they would be correct. However, properties for sale are well below equilibrium levels, meaning that it’s likely that nothing will change in the near future.
Commentators usually talk about the market going up or down. But what’s wrong with sideways? Prices can remain stable for periods of time, as has happened on a number of occasions over the last 40 years. Sometimes the market stays stable for years at a time. At Bourkes, we believe that 2022/23 will be one of those years and that property prices over the next year will not change very much.
In terms of cost, interest rates will rise over the next 18 months – potentially as much as 2%. On the supply side, new homes are not being built at the rate we require and there are figures showing a gap of 20,000 to 50,000 homes required in the market. We believe that these two factors will cancel themselves out and provide price stability for the foreseeable future.
What to buy during this time?
Recently, we had a client come into our office and ask for our advice. He had $800,000 in cash and he didn’t want to borrow – he wanted an investment that would generate capital growth and income.
Early on we discarded the below two options:
- A new apartment “off the plan”. Why was it removed? The capital growth isn’t there. It’s like driving a new car out of the showroom.
- An older unit in an old building. Why was it removed? This requires too much maintenance and the strata levies are high.
Where to next?
We focused on duplex/development sites in evolving areas like Wilson, Saint James and Rivervale. Our advice to improve value on any investment is always simply to “add value” to the investment. As an example, you can subdivide the rear yard or split a duplex pair into two blocks. You’ve just added value to an existing investment.
We don’t recommend building in the next two years as it is too expensive and will take too long. If you’d like to discuss investment options with us please call Alan Bourke on 0419 474 240
Office News
We are delighted to welcome Karlie Snelgar to the Bourkes team! Karlie has been in the real estate biz for over 10 years and loves the versatility of what real estate has to offer. Getting to watch the growth and potential that it brings, helping people find their dream home or the perfect investment, and more!
At Bourkes, we know the importance of first impressions. That starts with whoever picks up the phone at reception, of which Karlie plays a huge role. We are thrilled to have Karlie on board and look forward to all of our clients and community getting to meet you.
Good News Story
One of our Willagee properties (3×1) recently hit the market for leasing.
We held 2 home opens, with 16 groups through and 4 applications!
The team is pleased to see that it has leased for $540 per week, a result we are especially happy about for our client.
Seasonal Tips
With winter among us and the stormy season ahead, there is no better time to ensure your property’s gutters are clean!
Speak to your property manager today about gutter cleaning services we can recommend, starting at about $180 per property. We value your property and tenant’s safety and are happy to help!
Tenant of the Month
Congratulations are in order for our tenants of the month, Kyle and Lauren from Quinns Rocks!
After a long drive up there to complete our inspection we were rewarded with a beautifully kept home and no issues noted at all.
A pleasure to inspect and a pleasure to see Kyle and Lauren.
Contractor of the Quarter
Congratulations are in order for our Contractor of the Quarter, Ace’s Tree and Garden Service!
Ace’s Tree and Garden Service are always reliable and reasonably priced. They understand the importance of flexibility and help us go above and beyond for our clients and tenants in times of urgent need.
With winter upon us and stormy weather ahead, we highly recommend their services to keep your property and tenants safe. Contact them today or chat with your property manager if you are in need.
Good Investments
Offers Over $299,000 presented
Secure, Convenient & Views!
Great 2 bedroom end apartment in secure complex with sweeping City glimpses, private balcony, open plan living, updated kitchen & bathroom, secure parking, separate storeroom and swimming pool.
Above all else … imagine the convenience of living barely 5km from the centre of Perth. Minutes’ walk to cafes, shops, transport, and the Foreshore.
Property particulars:
2 x 1 x 1 Unit
Suit Buyers – Low $300Ks
Perfectly positioned in the heart of sought after Como Beach, within pleasant walking distance to the vibrant Preston Street entertainment precinct, a plethora of public transport options and the idyllic shores of Melville Waters, this ultra-convenient position is the ultimate lifestyle destination.
Ideally situated on the ground floor and facing the street, with a desirable Northern aspect allowing natural light to permeate throughout the main living area, this tidy two-bedder has plenty of potential.
Property particulars:
2 x 1 x 1 Unit
Offers above $299,000 invited
The Ultimate Lifestyle Destination!
Register your interest today and be amongst the first to view this renovated ground floor unit in an enviable lifestyle location right on the doorstep of the vibrant Preston Street entertainment precinct.
Property Particulars:
2 x 1 x 2 Unit
