WESTERN AUSTRALIA
Perth showed clear signs of recovery late in 2019 and is poised to deliver some growth in the new year. Vacancies have steadily reduced and rents are growing again, a clear indicator of future price movements, on the back of WA’s economic revival. Evidence of prices fighting back is now being seen in data from SQM Research and CoreLogic.
With the local economy and property market so long in downturn (the market last peaked in 2013), it’s easy to forget that Perth historically has been a national leader on growth in population and house prices.
After five years of gradual decline, there are good buying opportunities across the city and forward-thinking investors are already active. Perth house prices remain below the levels of 2010. There are particularly good opportunities to secure properties with zonings that allow a second dwelling to be built.
Perth now has the highest affordability levels of any capital city and first home buyers boosted by cheap finance and government assistance (the state government is offering major incentives for off-theplan purchases) will find good pickings. The City of Kwinana in the city’s south offers houses in the $200,000s, close to major jobs nodes.
Middle-market areas including the LGAs of Stirling, Melville and Joondalup will attract a growing number of buyers.
Outside the state capital, key resources regional centres like Port Hedland and Karratha will continue to grow their prices after finding the bottom of the trough in 2018 – with a long way to go to reach the crazy pricing levels of the mining investment boom.
Port Hedland’s median house price rose 15% in 2019, but at $435,000 remains a long way south of the peak levels, which topped $1 million.