ACTON CHIEF EXECUTIVE TRAVIS COLEMAN
What is your opinion of the past year in Perth real estate?
2016 was a challenging year for the Perth property market due to slower population growth and a weakening economy.
This was reflected in more competitive property prices, which towards the last quarter of the year resulted in a greater level of buyer enquiry.
The number of houses listed for sale also stabilised and even declined in some areas of Perth over recent months, which is another positive sign for the property market.
The median house price also stabilised and that is an indication that the Perth property market has reached the bottom of the current property cycle.
What are your predictions for the market in 2017?
This year should see a revival in the fortunes of the Perth property market due to a number of factors.
Firstly, Perth property is now among the most affordable of any capital city in Australia.
This affordability is highlighted by the fact that the ratio of annual income in WA compared to the median house price in Perth is now 5.6.
In comparison, it now takes 10.4 times the annual salary for someone living in NSW to buy a house in Sydney and 7.8 for Melbourne.
As a result of this trend, first-home buyers should be very active in the Perth market, as well as upgraders during the year.
Recent changes to the First Home Owners Grant should also add an extra incentive to young buyers wishing to enter the property market.
Consumer confidence should also begin to improve, with green shoots now appearing in the resources sector with an upswing in commodity prices, especially iron ore.
Because of Perth’s affordable house prices, we should also see more activity from interstate investors in the WA market over the year.
At the same time, the supply of houses should start to tighten as new building approvals in Perth have been on the decline for more than 18 months.
In particular, that should bring some good news for landlords who have been battling an oversupply of rental properties during the past year and have had to cut rents substantially to meet the market.
What are your top tips for buyers and sellers looking to make their move in the local market this year?
If you are a seller, invest your time in finding the best real estate agent you can.