PEARD REAL ESTATE GROUP CHIEF EXECUTIVE PETER PEARD
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.