\nDuring the week we heard from Paul in WA, who owns several properties in that state and, through council rezoning, has the opportunity to subdivide but he wants to know the impact of a flood of similar properties onto the market. We talk to a WA agent who gives us the lowdown. Milton Rendell from Real Estate Plus in Perth is with us today.
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Kevin:\u00a0<\/b> We\u2019re going to answer a question in the show now that came in from Paul. Paul is based in Perth. Thanks for your nice comments about the show, too, Paul. Lovely to have you listening.
\n\u201cOver the last ten years,\u201d Paul writes, \u201cI have been buying a few properties, all of them in the area of Perth that\u2019s now set to be re-zoned. I suspect that when this re-zoning is approved, likely in a couple of months\u2019 time, that a number of homeowners in the area will be taking advantage of this, at the same time, creating possibly an oversupply of battle-ax-type properties for sale. Have any of your panel of experts experienced this in other parts of Australia, and did they notice if it had any impact on potential sale prices?\u201d
\nWe can probably go one better than that for you, Paul, and joining me on the line now, Milton Rendell from Real Estate Plus in Perth.
\nMilton, you heard there what Paul had to say. What\u2019s your view about that amount of stock coming on the market, and particularly for battle-ax-type properties? Is it going to impact prices?
\nMilton: <\/b>I don\u2019t think so, Kevin. I think some of the areas are low-demand in any market, and you have to be mindful you\u2019re not talking about an area like that. But through the northern corridor, I know there\u2019s still a lot of development still <\/b>happening.
\nThe northern corridor, for those who know Perth, is in areas like Yanchep, which is pretty well at the top of that corridor, is seeing new activity. There\u2019s certainly been a lot more activity or hype around that area in the last 18 months, which may surprise a few people. The area that I\u2019m in, which is the eastern corridor, our whole town is zoned for unit development, yet we have buyers still coming through, still inquiring.
\nI think the key to anything is following the government money. I know through the corridor that I\u2019m in and certain bits of the northern corridor, there\u2019s still a lot of government money being spent.
\nWill there be a bit of pressure on prices? I think more realistically, the boom has certainly been over for a while, we know that. Prices have softened slightly, but I wouldn\u2019t say to the extent some people have expressed. I think there\u2019s been more people who just got pressure through losing jobs and probably over-committed more than anything that\u2019s softened some of the prices in some of the areas.
\nKevin:\u00a0 <\/b>Yeah, Milton, Paul especially mentions their battle-ax blocks. Are they fairly popular in Perth, or are they relatively new?
\nMilton:\u00a0 <\/b>They do exist. They\u2019re not uncommon. There\u2019s certainly been a corral for where I am, and I know that within an eight-kilometer range from Perth there\u2019s been quite a bit of it. So it\u2019s nothing new. It\u2019s pretty common, to be honest. We\u2019re getting used to living on smaller lots of land now, and I know there have been government proposals to having blocks of less than 200 square meters and even lower than that.
\nNo, it must be there because they\u2019re approving them. It\u2019s just the developers have to get their heads around what\u2019s the best routine for them. Building has been a little bit slow, so they\u2019ve been taking that opportunity to capitalize on that, as well.
\nKevin:\u00a0 <\/b>What would Paul be better off doing here, getting the approvals to do it, or selling the lot as it is?
\nMilton:\u00a0 <\/b>Look, it\u2019s an interesting one. Obviously, I\u2019m not knowing where it is. I\u2019m always one of holding as long as you possibly can. Do I see the market flying in the next 12 months? Probably in Perth, we\u2019re talking about being steady rather than an explosion.
\nBut you have to be mindful, we\u2019ve been quieter over here than they have been on the east coast for probably the last two and a half years, so we may work against the trend of the east. So I think at this stage, if he can afford to hold on, I\u2019d be holding on for a little bit longer.
\nKevin:\u00a0 <\/b>Okay. Good. There\u2019s an answer to your question, Paul.
\nMilton Rendell from Real Estate Plus in WA, thank you so much for your time, mate. All the best.
\nMilton:\u00a0 <\/b>Happy to help, Kevin. Any time.
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