Spring in step as mar­ket an­tic­i­pa­tion grows

Guardian Express - - RESIDENTIAL -

THE Perth real es­tate mar­ket is about to en­ter one of its busiest pe­ri­ods with more homes set to come on to the mar­ket and buy­ers more ac­tive in the lead up to Christ­mas.

Res­i­den­tial asked sev­eral prop­erty ex­perts for their thoughts on the state of the mar­ket.

The win­ter months are tra­di­tion­ally slower in the real es­tate mar­ket and this year has been no dif­fer­ent.

In say­ing that, we have seen prop­erty prices re­main fairly sta­ble dur­ing this pe­riod, in­di­cat­ing that the de­cline we have seen over the past cou­ple of years is slow­ing and even lev­el­ling out.

We an­tic­i­pate that the warmer weather will bring out more buy­ers and cre­ate more ac­tiv­ity.

The top end of the mar­ket is al­ready start­ing to show signs of im­prove­ment, with the most ex­pen­sive homes in Perth show­ing a 1.5 per cent in­crease in re­cent times.

At the op­po­site end of the mar­ket we are also start­ing to see in­creased in­quiry from first-home buy­ers.

This sec­tion of the mar­ket is recog­nis­ing that there has rarely been a bet­ter time to buy in the West.

As con­fi­dence slowly re­turns due to im­prov­ing eco­nomic con­di­tions, firsthome buy­ers are start­ing to take ad­van­tage.

Sub­urbs with a me­dian house price un­der $500,000 are at­trac­tive. Some ex­am­ples are Nol­la­mara, Man­durah, For­rest­field and Mer­riwa.

We do not ex­pect to see much of a rise in prices. Be­tween now un­til De­cem­ber, we will more than likely ex­pe­ri­ence more of the same.

Any in­creases will start to ap­pear grad­u­ally from 2019 on­wards.

Given the his­tor­i­cally low in­ter­est rates, hous­ing af­ford­abil­ity and a pos­i­tive out­look on the lo­cal econ­omy due to ex­pected in­creased min­ing ac­tiv­ity and job growth, there is ev­ery pos­si­bil­ity that we will see the mar­ket turn as we move to­wards the end of 2018.

We are al­ready see­ing in­creased demand from east­ern states in­vestors who recog­nise WA now of­fers su­pe­rior growth op­por­tu­ni­ties to the east coast.

As the Syd­ney and Mel­bourne mar­kets wind down, Perth is one of those mar­kets prop­erty in­vestors can turn to for not only af­ford­able prop­erty, but prospects of growth mov­ing forward.

The Peard Real Es­tate Group has found a strong im­prove­ment in prop­erty sales in the pre­mium end of the mar­ket, es­pe­cially homes priced above $1 mil­lion.

Up­graders un­der­stand that higher-priced homes are now sell­ing for be­low re­place­ment cost in many ar­eas of Perth.

Sim­i­larly, first-home buy­ers un­der­stand that homes in coastal lo­ca­tions rep­re­sent ex­cel­lent value for money com­pared to build­ing a new home fur­ther in­land.

Perth’s north­ern sub­urbs are dom­i­nat­ing the list of prop­erty ‘hotspots’ and I think we will see some strong fig­ures to come from sub­urbs such as Dou­ble­view, where strong demand and good value con­tinue to drive sales growth in the area.

I think it is safe to say that when the price growth does re­turn, it will be slow and steady, which is gen­er­ally much bet­ter for a sus­tain­able mar­ket.

See more at www.com­mu­ni­tynews.com.au/realestate/.

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