Friday, January 30, 2009

House values fell in more than 40 per cent of Perth suburbs

If you are looking for a home in Perth, the following article will be particularly useful. We're now looking at the performance of average house prices. The danger here is the artificial increase in "average" house prices due to factors such as land releases etc. As revealed in this article, its not all bad news. East Perth (pictured in the banner of this blog) went up 36% in value!!!

Perth's worst performing suburbs revealed

"House values fell in more than 40 per cent of Perth suburbs in the last financial year, latest figures show.

The Landgate statistics show prices recorded no growth at all in a further 18 per cent of Perth suburbs.

They paint a further bleak picture of the once-booming residential real estate scene in the city, after Real Estate Institute figuresreleased earlier this week showed house prices had fallen 11 per cent across Perth in 2008.

Landgate surveyed 246 properties in 232 suburbs in the metropolitan area, revaluing what acting valuer-general Kevin Di Prinzio called a typical property in each suburb.

Westminster suffered most, with the suburb recording a 15.2 per cent drop in market value, closely followed by Midland (down 14.3 per cent) and East Cannington.

Midland (20.7 per cent) recorded the largest drop in land value, while the south-east dominated the poorest rent performers, headed by Jarrahdale (15.1 per cent drop), Mundijong (12.9 per cent) and Byford (10 per cent).

East Perth recorded the largest jump in market value, at 36 per cent, while northern suburbs Kingsley (27.3 per cent), Mindarie (26.7 per cent) and Two Rocks (23.3 per cent) filled the next three spots.

Coogee (48.1 per cent) posted the largest increase in land value, largely due to new land releases, while Herne Hill (45.5 per cent) topped the list of rentals.

Rental growth was particularly strong across the city, with suburbs as diverse as Swanbourne (38.5 per cent) and Lockridge (34.6 per cent) recording healthy rises.

Overall, the average rent was up 13.8 per cent to $330, land value was constant at $440,000 and market value rose 2.9 per cent to $540,000.

Landgate acting chief executive Paul Whyte said that as the survey was based on actual valuations of a constant sample of properties, it reduced distortions that might occur when using measures such as average sale price."


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