On the move – Perth property market on the rise again (ANALYSIS)
While there’s been a lot of focus on the downturn in the Perth property market, there’s plenty of good news coming in.
A number of sources have revealed that Perth’s property market has reached its low and is starting to show signs of improvement.
A word from the numbers
The West Australian reported that “figures from CoreLogic showed dwelling values in the city improved by 0.2 per cent in January to be 2.1 per cent up over the past three months” and that “house values were flat but thanks to a pre-Christmas improvement they were up by 2.2 per cent over the quarter.”
It also noted that both Perth and Darwin markets had climbed by 1.8 per cent in the past three months, giving favourable conditions for buyers: “Buyers still have a great deal of leverage in these markets, with listing numbers remaining high, long selling times and high rates of discounting.”
A report by REIWA noted that Perth’s median house price showed signs of strength in the December quarter: “It’s also worth noting that preliminary dwelling sales for the December quarter 2016 are five per cent higher than they were at the same time in 2015, with any increase in transactional activity a positive signal that buyer confidence is returning.”
What the experts say
Various property experts shared their tips on the Perth market, supporting this notion that the market is starting to move and it’s a good time to buy.
The article also noted that according to the latest Housing Affordability Report by the Adelaide Bank and the Real Estate Institute of Australia, housing affordability in WA is on the upswing.
“This is a notable improvement over the [past] year and good news for prospective homebuyers looking to enter the market or find their next home,” says Hayden Groves, Real Estate Institute of WA
Nigel Satterley, Satterley Property Group, also believes it’s going to be a good year for property investors: “This year will be very similar to the past year, which makes 2017 the right time for those wanting to upgrade, invest or enter the property market for the first time.”
What we say
Property Wizards director Trevor Dunkley says “these are all good signs that the market is starting to pick up again, and makes it an ideal time for buyer’s to get in before prices and interest rates rise.”
He says while there might be room for price negotiation, it’s important to focus on quality and long-term growth.
Our advice to buyers is always:
- Select the right property in the right area
- Research from top to bottom – from cities to suburbs and streets within suburbs
- Look for a range of growth drivers
- Consider renovation or development opportunities
Travis Coleman, Acton, commented that the stabilisation of the median house “is an indication that the Perth property market has reached the bottom of the current property cycle. This year should see a revival in the fortunes of the Perth property market.”
He also noted the importance of location. While location is important, and Peter Peard, Peard Real Estate Group, says, “Now is a great time to buy property in Perth especially in prime locations near the ocean and river”, he emphasised the significance of the current conditions: “If you are in the market to buy a property, then my advice is to do so within the next six months. The Perth property market is at rock bottom, so now is the time to get in before recovery starts.”
The time is now
This article also noted that “industry experts agree the Perth and WA residential markets are at or near rock bottom and predict prices will start to rise again towards the end of 2017 — meaning the time is right for buyers in all sectors to take advantage of current conditions.”
Got any questions?
So if you’re ready to capitalise on these ideal conditions in the Perth property market and low interest rates, why not read our free Get Ready to Invest in Property eBook.
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