Bright forecast for real estate in new year
2018 promises to be another exciting year in the residential sector.
We are seeing several emerging trends that are likely to increase this year, including design in greener living and energy efficiency.
Using sustainable design with high-quality products has minimal environmental impact and is cost-saving.
Dual-entry homes are a continuing trend, particularly with adaptable housing and future proofing for family members.
Dual occupancy has been gaining momentum, along with granny flats and ancillary accommodation.
There is also an increased interest in terrace-style housing and micro-lot developments.
Being a focal hub of the home, larger kitchens, similar to typical American kitchens, are in demand, with interactive spaces popular spots for homework and family interaction to take place.
Seamless indoor-outdoor connectivity goes along with another trend.
The increased interest in expandable back-up battery systems is rapidly becoming another must-have. ■ OFF the back of the stabilising conditions of 2017, we expect market conditions to moderately and steadily improve throughout 2018, although REIWA cautions against expectations of rapid growth in rents or prices next year.
In the established housing market, sales volumes started to stabilise during the June and September quarters.
Last year, there was an average of 489 property sales recorded each week.
REIWA forecasts there will be about 500 sales per week during the next six months.
If sales volumes continue to trend at current levels, Perth’s median house price should also stabilise in 2018.
With new dwelling activity set to decline in 2018, REIWA forecasts the number of properties for sale in Perth to remain at current levels over the year.
Listings for rent declined significantly during 2017, reducing from 11,000 in January to just over 9300 by December.
Leasing activity levels were strong, with about 1180 rentals leased each week. If this trend continues, the balance between supply and demand of stock will continue to improve in 2018. ■ WITH 2017 a year of stabilisation for the property market here, I expect 2018 will be a year of moderate growth.
New construction activity, along with declining levels of stock on the market, provides strong evidence that we are headed into a market recovery phase.
UDIA’S latest data reflects increased confidence in the market from the development sector, with lots under construction for release in the next six months up nearly 10 per cent.
This positive sentiment is reinforced by recent increases in building and finance approvals and the fact that consumer confidence is at a three-year high.
The latest Housing Industry Forecasting Group report also predicts an upward trend in new dwelling commencements over the next couple of years.
In terms of areas to watch in 2018, the State Government’s roll-out of Metronet will stimulate growth in areas near the first new stations at Yanchep and Thornlie.
Scarborough, Fremantle and Subiaco, which are undergoing major rejuvenation, also pose good investment potential. ■
Jason Robertson Master Builders Association housing director
Hayden Groves, REIWA president
UDIA WA chief executive