Property News 121001


Companies – Qube expands its northern corridor residential land holdings acquiring 14ha site in caversham in the swan valley on the back of land price rises in the area from $220K to $270K since 2009, compared to falling prices in other residential areas, despite planning approvals being  more challenging with the requirement for a continued mix of tourism and agricultural uses.

Market outlook  – vacancy rate is at 1.8%, ABS historical stats  show where it drops below 3% property prices begin to rise. Housing Industry Forecast Group (“HIFG“) is due to release a report and is expected to be lower than the 32,000 homes forecast by the National Housing Supply Council(“NHSC“) based on an increase in number of people per household compared to the historical trend of a reducing number of people per household. Undersupply in housing mainly in Perth and the Pilbara and not in regional towns. HIFG estimates housing shortfall of 8,000 homes. ABS stats show population increasing at 3.1% or 73,300 people to year ended March 2012. REIWA stats show First Home Buyers represent about 27% of buyers and listings are down to 12,150 in june 2012 quarter, down 30% from june 2011 and 15% from march 2012 quarter.


Retail – Rent rises to tenants in shopping centers of 40-70% are not uncommon as a starting point to re-negotiation. Joondaloop retail rents are around $350-$400m2, comparable to fringe CBD but where  land values are  $2,500m2 compared to Joondalup at $1500m2 to purchase. Singaporeon Inverstor buys subruban shopping center for $15.9M for rent of $1.52M, 9% yeild, 495 car bays, coles+IGA and mixed franchise & non franchise shops. Such investments are considered bullet proof with rents and tenants remaining through softer economic conditions.

Toursim – stats show their is a shortage of hotels etc, but there are acquisitions for future new constructions, wellington street property with the old gobble nightclub sold for $2.8M for 426m2 building a $6572/m2 price tag with plans for a 15 storey 88 room to be part of the oak chain of motels. This site sits along side the wilson parking of 1393m2 bought by a singapore syndicate for $4k/m2 for $5.5M.

Commercial/office – primewest to construct $30M 4 storey 2577m2 office at 253 stgeorges known as veil253. Huge Telstra site of 19,775 m2 incl 31 carbays, 8 levels of office space,  is on the market.