Looking to build on past year
RESIDENTIAL asked local property experts for their predictions for 2019. From the established home market to new builds, land, apartments and finance, they shared their thoughts on the market outlook for the next 12 months. Read more experts’ predictions in the real estate section at www.communitynews.com.au.
FINBAR goes into 2019 with a definite sense of positivity about the Perth apartment market on the back of strong sales across our projects in the last quarter of 2018.
The sentiment is far more positive than it was at the end of both 2016 and 2017 and I think we can now safely say that the bottom of the Perth market is well and truly behind us.
The developers who remained in the Perth market after a tough few years will benefit from the tightening of supply, which will ultimately have a positive effect on pricing.
The resurgence of activity in the resource sector is always mirrored with an upswing in activity in the Perth property market and we are seeing strong signs of recovery in terms of sales activity across our projects that reflects this.
If you put that against a backdrop of strong economic recovery nationally, with a tipped return to surplus this year and the realignment of the GST back in WA’s favour, you have all the ingredients for a return to stronger market conditions.
Investors remained the missing piece in 2018, but prudent investors are returning to the market and we expect a further upswing in investor activity. THE WA property market should remain stable this year, with some notable improvements expected in the Perth rental market.
While sales activity in 2019 is expected to largely reflect what we saw in 2018, there is a possibility that rising consumer confidence levels, coupled with improved housing affordability, could translate to increased sales volumes.
If sales remain at 2018 levels or better (about 500 per week), Perth’s median house price could improve during the next 12 months.
However, if lending standards tighten, this could restrict the number of people able to buy, which could negatively impact sales and prices.
If banks increase interest rates any further, this also has the potential to adversely affect buying and lending conditions in WA
The Perth rental market led the way in 2018, with stable rents, healthy leasing activity levels, declining listings and a plummeting vacancy rate.
The upward trajectory should continue in 2019, with stable population growth and slowing construction levels key drivers for this improvement.
Competition among tenants should increase, putting downward pressure on the vacancy rate.
Damian Collins, REIWA president
Darren Pateman, Finbar managing director