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30 March 2010
"On the Ground" Update
By Scott Robinson, Hegney Property Valuations Mandurah
Mandurah’s residential real estate market has had a tough few years. Since late 2006 values have generally been on a downward direction with a further spike late 2008 when the Global Financial Crisis began to affect property markets in Australia.
Late 2009 saw a return of buyer confidence with the general volume of sales increasing. Real Estate Agencies confirmed the increase in buyer activity, recording some of their best sales figures for a number of years.
This activity has continued into 2010. Whilst this activity has been predominantly towards the lower end of the market, $500,000 and less, we have also had a small number of larger sales occur. For example, two executive canal homes have recently sold for $3.5 million and $2.25 million. With examples of beachfront homes selling for $1.8 million and $1.62 million. These types of sales were very few and far between over the past 2 years.
Whilst the sales that are occurring are at levels less than the heights achieved in 2006 the volume of sales is pleasing. Generally, what follows volume is price increase, based on simple supply and demand dynamics.
The next 6 to 9 months of 2010 will determine how much, if any, occurs. On the negative side, vacant land still appears slow, especially the smaller lot land subdivisions which were popular during the boom but quickly went out of favour.
The apartment market is also slow with a large supply still available in the Mandurah Ocean Marina. Sales are starting to occur in the marina, however it will take some time for this area to reach its potential.
In general, there are currently some good buying opportunities left in what is still considered a buyer’s market. The general feeling, however, is that this may shift back to a balanced or potentially a seller’s market in the not to distance future.
23 March 2009
"On the Ground" Update
by Paul Timms, Hegney Property Valuations Mandurah
The residential property market in the Peel region is currently characterised by generally soft demand and an oversupply of property available for sale. We are however experiencing a reasonable volume of sales activity within the $250,000 to $450,000 range. This is largely being driven by first homebuyers and investors, taking advantage of the current low mortgage interest rates, the reduction in the value of these assets over the last 18 months and current relatively high rental returns.
This activity has however had limited impact on the next tier of values between say $500,000 and $850,000 in which market activity is slow, as the majority of these homes in the lower price tier being purchased are either current investments, vacant 'spec' homes and in some cases elderly people moving into retirement accommodation.
The higher priced properties such as beachfront, riverfront or canalfront homes have experienced a significant softening in values, predominantly past August/September 2008, when the global economic crisis began to take hold, affecting the net worth of those exposed to the equities market. We are however now seeing some renewed interest in higher end properties with purchasers motivated by the recent softening in values and perceived buying opportunities this has created.
Hegney Property Valuations Mandurah is a member of the Hegney Property Group. In response to the rapid development of the Mandurah region, Hegney Property Group established the Mandurah office to service this important region of Western Australia.
The Mandurah office was established in October 2002 to service the Peel Region comprising the localities south of Rockingham, east to Mundijong, inland to Boddington, south to Harvey and west to the coastal area of Myalup.
The office is under the leadership of Paul Timms and Scott Robinson collectively having some 30 years experience and expertise in all facets of residential, commercial, industrial and retail property valuation.
Hegney Property Valuations Mandurah are the preferred valuers for the City of Mandurah and are service providers to most of the major banks, non bank lenders and mortgage brokers in the region. In addition they provide a property consultancy service to a large database of private clients. Importantly, the valuers are highly experienced and well versed in all issues affecting the local property market including:
All directors and valuation staff both live and work in the Mandurah/Peel region. Being local valuers and residents is a valuable aspect for the provision of a comprehensive valuation service.
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