GLOOM: Strong economic fundamentals in Perth are not translating into home buyer demand, according to RP Data.

No life yet for Perth property: RP Data

Perth's property market remains Australia's battler, with new figures released today showing median house prices in Perth fell by nearly 3 per cent more than any other capital over the three months to May.


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Buyer demand is low as the housing stock is over priced, as is the land.

Part of the puzzle can maybe be explained by your "$AUS rallies to 26 year high against the pound". In the run up to 2007 immigrants from the UK/Europe/US could buy a lot more with their money. The currencies have since collapsed against the $AUS and so to have their housing markets. I belive the average uk home in 2007 was 200,000 pounds which back then was $500,000 AUS. Now their average price is 160,000 pounds which equates to roughly $240,000 AUS, so half what it was. So you can take away a lot of the demand from immigrants outside AUS as they will view Perth as extremely expensive.

Asset prices are re-setting, the over speculation 2005-08 has not re-adjusted, but the property guys will not tell you that... Plus addictive government stamp duty and bloated agent fees make the transaction un-attractive. You property guys want to stimulate your business, reduce your fees, dont whinge to the Govt to reduce Stamp Duty! Lastly some property is just plain overvalued, some average suburbs are just not worth spending $1,000,000 end of story!

I agree with both of you guys, the biggest joke of all is that the stamp duty should have been scaled back at some point past the introduction of GST, but it has been conveniently forgotten about and left in place at a very high level. Another reason for the market not moving is the new land release sizes. I went to one in West Swan the other weekend where the largest block was 595sqm??? miles away from anything, the developers are creaming it here with profits upwards of 300%. According to them though there is no "easy land left" in Perth. From the development in the swan valley, I beg to differ, flat as a pancake, with nothing around to obstruct developemt. Easy dirt, not soft shifting sand etc... I could go on about the wages in Perth being an average of $60k ( only 13% of the workforce works in the resource industry ) and the median house price being around the 500k+ mark and with that the math doesn't add up, but I won't

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