Western Suburbs Weekly - - Residential -

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.

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