THIS North Beach property could confirm whether Perth’s struggling real estate market has turned the corner. 
Real estate experts say that during the height of WA’s property boom the 1346sqm ocean-front house on West Coast Drive would have fetched more than $5 million.
It is for auction on Saturday and the selling price will be a strong indication of whether property prices, especially for top-end homes, have started to recover.
Nexus sales consultant Peter Berridge, who specialises in the North Beach area, said the property would have been highly sought after during the 2006-07 housing boom.
“It’s a nice elevated lot, with a nice frontage. It’s got everything going for it,” Mr Berridge said.
“I don’t think it would be an over-exaggeration to think it might have sold for in excess of $5 million (back then). We were going through an era where it didn’t seem to matter what you paid for it, you were always going to make a packet until the proverbial hit the fan.”
Mr Berridge said he believed values had dropped about 40 per cent since the property peak.
“The last sale was 341 West Coast Drive in Trigg that sold for $2.2 million and it was a very choice piece of land _ something like that could have possibly pulled $4 million in 2007 and I can mention lesser blocks that sold for more than $4 million,” he said.
According to Landgate, North Beach has enjoyed solid property value growth in the past decade.
It recorded a 19.4 per cent average annual growth rate in the 10 years to December 2008. It also recorded strong growth last year and was among the Perth metropolitan area’s Top 10 performing suburbs, with a 17.7 per cent jump in median house prices.
But during this period it recorded a low volume of sales activity, with just 19 homes sold.
This could have skewered the statistics.
“There’s no doubt that the market for premium coastal property has come back since the height of 2007,” Real Estate Institute of WA president Rob Druitt said.
“Indications are that the first signs of recovery are starting to come through now, so there’s certainly a unique opportunity for buyers who are (looking) in that market,” he said.
Mr Druitt said it has been a bottom-up recovery, so if the top end was reasonably priced and sold, it could give a good indication that Perth’s entire property market had seen the worst.
Source : www.news.com.au
All the latest NEWS from Perth 
Housing Development on the Banks of the Moore River
Posted in Living in Perth, Local News, Realestate and Home Loans, tagged 15000 people., 2000, 2000 new homes., 6000 people, allowed, allowing, approved, area, build, Cabinet, comment, cut 60 per cent, cut by 60 %, decade, develop, developer, development, expected, forward, Gingin, go ahead, home, Homes, infrastructure, John Day, Living in Perth, Local News, major, Marcus Plunkett, Minister, Moore, moore river, much needed, needed, new, on the banks of the Moore River, Original plans, parliament, people, Planning Minister, plans, plans for approval, population, population of around, public, public comment, released, residential, revised, revised plan, river, shire, shire of Gingin, smaller, told, tourism, tourism development, trying, WA on June 11, 2009| Leave a Comment »
Finally after a decade of trying to get plans to develop on the banks of the Moore River, they have been given the go ahead to build 2000 new
homes.
Planning Minister John Day told parliament Cabinet had approved a smaller development that is allowing a population of up to 6000 people.
Original plans have been cut by 60 per cent which would have allowed a population of around 15000 people.
Marcus Plunkett the developer has said ” this will ensure that the shire of Gingin will have a major residential and tourism development which will bring much needed infrastructure to the area.”
This development will still need to put forward plans for approval, a revised plan is expected to be released for public comment.
Read Full Post »