Western Suburbs Weekly - - Residential -

What is your opin­ion of the past year in Perth real es­tate?

2016 could be best de­scribed as a buyer’s mar­ket, with the sup­ply of homes for sale far out­strip­ping de­mand.

As a re­sult, the prop­erty mar­ket be­came very price-sen­si­tive and sell­ers needed to set a re­al­is­tic sell­ing price that re­flected the lo­cal mar­ket.

The rental mar­ket was also un­der pres­sure and land­lords sim­i­larly needed to be very price­sen­si­tive when set­ting their rents.

Weak con­sumer con­fi­dence was the main rea­son for the de­pressed na­ture of the lo­cal prop­erty mar­ket.

Buy­ers were hes­i­tant to make a de­ci­sion due to fi­nan­cial is­sues over job in­se­cu­rity.

At the same time, the build­ing boom in WA over the past three years led to an over­sup­ply of homes, dur­ing which time our pop­u­la­tion growth slowed sig­nif­i­cantly.

Over­all, it was one of the tough­est years in my real es­tate ca­reer, which has spanned more than two decades.

Like other in­dus­tries, the cur­rent eco­nomic sit­u­a­tion in WA will lead to a fur­ther ra­tio­nal­i­sa­tion of the real es­tate sec­tor, with smaller com­pa­nies un­der pres­sure to com­bine with larger and more ef­fi­cient busi­nesses.

What are your pre­dic­tions for the Perth mar­ket in 2017?

The fun­da­men­tals are in place for a re­cov­ery in the Perth real es­tate mar­ket dur­ing the sec­ond half of 2017.

Hous­ing is very af­ford­able and this is un­der­lined by the fact that WA now has the high­est pro­por­tion of first-home buy­ers in the owne­roc­cu­pier mar­ket na­tion­ally, ac­cord­ing to the lat­est data from the Real Es­tate In­sti­tute of Aus­tralia.

The only fac­tor that is miss­ing in driv­ing a re­cov­ery in the Perth prop­erty mar­ket is con­sumer con­fi­dence.

My pre­dic­tion is that there cer­tainly will be an im­prove­ment in the Perth prop­erty mar­ket but will most likely not oc­cur un­til the sec­ond half of 2017.

In the mean­time, now is a great time to buy prop­erty in Perth, es­pe­cially in prime lo­ca­tions near the ocean and river.

Savvy buy­ers are al­ready tak­ing ad­van­tage of Perth’s com­pet­i­tive prices, with Peard record­ing ris­ing in­ter­est in the $1 mil­lion-plus mar­ket, where big price dis­counts are now on of­fer.

Cur­rently, there are great bar­gains to be had in prime coastal sub­urbs stretch­ing from Min­darie to Man­durah, as well as river­side sub­urbs close to the Perth CBD.

What are your top tips for buy­ers and sell­ers look­ing to make their move in the lo­cal mar­ket this year?

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.

Ex­clud­ing prime coastal and river­side sub­urbs, the over­sup­ply of new apart­ments will cre­ate great buy­ing op­por­tu­ni­ties over the next six months for peo­ple who want to en­joy this type of life­style.

If you are a seller, you need to have all the three Ps cor­rect be­fore you list your prop­erty for sale – price, pre­sen­ta­tion and pro­mo­tion.

Buy­ers are very se­lec­tive and sell­ers will need to take the time to en­sure that their prop­erty has a com­pelling rea­son for some­one to buy it.

Sell­ers need to lis­ten care­fully to their real es­tate agent and act on their ad­vice more than ever to se­cure a buyer.

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