All signs point to prop­erty re­cov­ery in Perth

Western Suburbs Weekly - - Residential -

AT Ac­ton, we are cau­tiously op­ti­mistic about the prop­erty mar­ket in 2018.

The fi­nal quar­ter for 2017 saw a shift in buyer sen­ti­ment and stock lev­els are down sig­nif­i­cantly in soughtafter sub­urbs.

Our agents and prop­erty man­agers are re­port­ing an in­crease in the num­ber of peo­ple at­tend­ing home opens and va­cancy rates have fi­nally started to come down.

There seems to be a gen­eral pos­i­tive sen­ti­ment about the mar­ket, which is a good in­di­ca­tion of the di­rec­tion we’re headed.

If you have been wait­ing for prices to drop fur­ther, I sug­gest you wait no longer.

In the western sub­urbs, stock lev­els are down by as much as 70 per cent in some sub­urbs.

There is a short­age in Ned­lands, Cottes­loe, Floreat and Clare­mont, which means in­creased com­pe­ti­tion among buy­ers.

We are also ex­pe­ri­enc­ing record lev­els of “off-mar­ket” trans­ac­tions, util­is­ing a data­base of ware­housed buy­ers ea­ger to en­ter the mar­ket. ■

2018 is al­most cer­tainly the be­gin­ning of the re­cov­ery of the Perth prop­erty mar­ket.

I think the growth will only be mod­er­ate at around 4 per cent per year for the next few years.

In Perth, there have been very few new apart­ment projects start­ing con­struc­tion in the past year and this will lead to a sig­nif­i­cant short­age of sup­ply in 2018 and 2019.

When there is a sup­ply short­age we usu­ally see in­creases in price, how­ever I ex­pect th­ese to be mod­er­ate gains due to the lim­ited wage growth in WA.

We see the best growth ar­eas be­ing:

- East Perth, due to the foot­bridge con­nect­ing to the new sta­dium and Bur­swood be­ing com­pleted.

- Kar­rinyup, where there is a short­age of sup­ply of high-end yet af­ford­able apart­ments and the Kar­rinyup Shop­ping Cen­tre is go­ing through a $600 mil­lion re­de­vel­op­ment.

- Clare­mont, where there is lim­ited sup­ply and a huge de­mand from down­siz­ers want­ing large apart­ments.

- Rock­ing­ham fore­shore, where prices are very low and the area seems un­der­val­ued given the abun­dance of new cafes, restau­rants and bars along the north­fac­ing beach­front.

- As­cot Wa­ters, where the ma­rina is go­ing through ma­jor re­de­vel­op­ments and there is al­most no sup­ply of high-end, water­front apart­ments for peo­ple want­ing to stay in the east­ern sub­urbs. ■

PERTH prop­erty val­ues have been in de­cline or flat for the past five years, but in the past two months prices have not de­clined, which sig­nals the mar­ket is mod­er­at­ing.

There is height­ened buyer in­quiry and trans­ac­tions in the first-home buyer and life­style mar­kets indi­cat­ing a pos­i­tive out­look, al­beit one to be cau­tiously con­fi­dent about.

Buy­ing ac­tiv­ity is be­ing driven by sta­bil­is­ing em­ploy­ment and pop­u­la­tion growth in WA, while in­vestor ac­tiv­ity re­mains sub­dued.

While the rental mar­ket re­mains chal­lenged, va­cancy rates are start­ing to slowly fall off a record high sup­ply of stock. Rental val­ues will re­main con­tained into 2018 in com­par­i­son to pre­vi­ous record lev­els, and will be fur­ther lim­ited by first-home buy­ers pur­chas­ing more af­ford­able new homes.

Sale price move­ments are ex­pected to be min­i­mal and mod­er­ate in the medium term, but a health­ier, more ac­tive mar­ket is ex­pected dur­ing 2018.

Sales ac­tiv­ity will con­tinue to im­prove in the metro area and some re­gional mar­kets such as Bun­bury and the South-west re­gion.

Mar­kets to watch may in­clude the Swan east­ern cor­ri­dor, the coastal Cottes­loe-clare­mont precinct, the Ar­dross-melville area south of the river, and north­ern coastal sub­urbs such as Hil­larys and Dun­craig. Over the past quar­ter, most of th­ese lo­ca­tions have had pos­i­tive price growth. ■

Travis Cole­man Ac­ton chief ex­ec­u­tive

Paul Black­burne Black­burne man­ag­ing di­rec­tor

John Per­cu­d­ani Real­mark man­ag­ing di­rec­tor

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