WA forges into ideal price growth conditions
New research shows that Perth buyer activity is up at a time when the number of property listings is well below average
WA property is doing fine, if you’re asking. Capital growth is at levels much higher than in most other states, and the returns are good too, especially in Perth’s inner-city suburbs.
There’s also another healthy indicator that most investors and residents won’t even realise: new ABS statistics reveal that nearly three in four Western Australians plan to move into a different property soon, mostly within their state.
The figures amount to an estimated 491,000 adults living in WA who plan to make the move over the next three years. That’s the kind of market activity that states on the eastern seaboard can only dream of.
ABS’s director of WA State and Territory Statistical Services David Waymouth says the fact that so many Western Australians want to move house shows how much lifestyle aspirations creep into people’s decisions.
“Most Western Australians would like to live in a separate house, with 73% of those planning to move within WA in the next three years preferring a separate home to a townhouse, flat, unit, or apartment,” Waymouth says.
“Home ownership is also important,” he adds. “Sixty-five percent of Western Australians who plan to move within WA over the next three years [show] a preference to own their home rather than rent.”
The results were pulled from the ABS’s WA Housing Motivations and Intentions Survey, which collected information about current and future housing intentions among adults living in WA.
The survey also looked at ‘future movers’: adults indicating a plan to move in the next three years. Just under half of all future movers had lived in their current home for less than two years, while a further 24% had lived in their current home for between two and five years.
Waymouth says the survey also looked at what may influence people when choosing a future house.
“When choosing their future home, just under half of future movers within WA said appearance and layout were factors influencing their decision,” he reports. Other influences on people’s choice of house included:
• 44% wanted to move to a better-quality residence
• 42% said familiarity with an area was a strong influence
• 38% said being close to family or friends was important
• 38% reported that having access to facilities and services such as shops or schools mattered
The results also showed that people’s priorities when moving home reflect their different stages of life. People in senior households were more likely to choose a home that was smaller (34%) or on a smaller block (27%). People in senior households were more likely than those in non-senior households to indicate being close to family or friends was important (56% compared with 36%).
Vendor hopes rising
Considering the results of the ABS survey, a high level of activity is certainly evident in WA property sales. The Real Estate Institute of Western Australia (REIWA) reports that sales activity in Perth’s housing market has returned to its 15-year average after three years of volatility.
Its data for the March quarter found that the turnover of properties had lifted by 14% across the state over January, February and March as 13,200 properties changed hands. This was up from the 11,600 property transactions over October, November and December and up by 12% on the same time last year.
REIWA President David Airey says the higher activity was the result of strong first home buyer activity, a force he says is changing the market.
“The number of selling days has hardly moved and now sits at an average of 57, but the good news is that old stock which has been lingering on the market for a while is finally starting to shift,” Airey says.
The irony is that this is coming exactly at a time when the number of listings has slumped to a relative low of 8,260 properties, well below the 12,000 mark considered normal for Perth.
“The market has swung back to favour sellers,” says Airey. “We see this through the emergence of price bidding and multiple offers and with some vendors exceeding their asking price.”
Spotlight on: best yields on inner-city units
If you’re an investor looking for the comfort of an always-in-demand inner-city suburb, you might be distressed to know that you’ll get much better yields in some of Australia’s other capital cities. In fact, the very top yielding inner-city unit markets across Australia are largely concentrated in Darwin and Brisbane.
Still, Perth doesn’t rank far behind. Bayswater, the inner-city suburb with the highest yields in Perth, ranks as the eighth best-yielding market of its kind in the country.
Suburb To Watch
Kinross
Elaine Townsend of Townsend & Associates Realty explains why Kinross has plenty of good buying opportunities
Selling points: The suburb has a great location that’s close to the ocean while still allowing easy access to amenities and great schools.
Most sought-after properties: The properties in most demand are four-bedroom, two-bathroom properties that have a double garage.
Most common properties: The majority of houses that characterise the suburb are four-bedroom, two-bathroom properties with a double garage. Some have a below-ground pool and most have air conditioning.
Top amenities: The best amenities would be the schools, which have great reputations. There is also a good choice of shopping, local cafes and supermarkets, and the suburb is close to all types of public transport. In fact, local public transport is brilliant. It includes a local train station, while main arteries such as Connolly Drive, Marmion Avenue and Burns Beach Road lead to beaches and the freeway.
Local industry and businesses: The CBD is easily accessible via the Mitchell Freeway. Major employers in the local area include IGA, Chicken Treat and Andersons Cafe.
Recent changes: Council improvements include a revamp of local parkland, and eff orts to beautify the streetscapes.
Best streets: Kinross is split into two sections. Normally there is a liking towards the west side of Connolly Drive, but even going east has wonderful features too.
