Bright fore­cast for real es­tate in new year

Western Suburbs Weekly - - Driveway -

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

Al­li­son Hailes

UDIA WA chief ex­ec­u­tive

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