Owner-occupiers take a chunk of the unit market as Perth’s property market plateaus after a rough few years
Perth is finally starting to find its footing after many years spent plummeting.
“Supply and demand are in balance – there is a healthy count of properties for sale compared to the number of interested buyers, and there is a closely fought tug-o-war between buyers and sellers,” reports Jeremy Sheppard, director of research at Empower Wealth.
“Prices have corrected, and the economy is back on its feet. But that doesn’t mean the city as a whole is set for growth – it has only just got back into a balanced position.”
With many having lost confidence in Perth’s ability to hold up economically, to sustain a thriving job market and drive growth in the property market there needs to be more happening in this capital to attract buyers.
“When a market like Perth starts to recover, it usually starts in the more affluent areas where prices are considered cheap,” Sheppard says. “Those fortunate to be in the money take advantage of the weak market and buy into expensive upmarket areas cheaply. The data indicates that markets closer to the CBD with million-dollar price tags have the highest demand-to-supply ratios.”
As demand heats up in premium suburbs, perhaps the rest of Perth could benefit from a spillover.
Unit sales increase
According to the results of a survey conducted by property consultancy firm Urbis, the apartment lifestyle looks to be catching on in Perth, as sales of such properties increased by 18% in the March 2018 quarter.
“Perth apartment sales were the highest level of sales recorded since the beginning of 2016,” says Clinton Ostwald, national director of property economics and research at Urbis.
“It really is a barometer of the Perth economy. Post the mining boom, the decline could be felt; however, with the economy benefiting from a rise in mining sector investment to maintain its expanded capital asset base, this is flowing through to the local apartment market.”
Given the limited investor confidence in this market, owneroccupiers comprise a significant chunk of buyers.
“In Perth, owner-occupiers accounted for 42% of sales, continuing the trend in the rise of the owner-occupier market,” Ostwald says.
“Though it may be a smaller city, it is by no means our least popular for apartment dwellers.”
SUBURBS TO WATCH
YOKINE: Spiralling house market stabilises
A suburb of the City of Stirling, Yokine is still in downturn mode, though the losses are gradually being minimised.
House prices slipped by just 0.9% in the 12 months to May 2018, while unit values fell by 3.3% to a median of a little over $400,000. The rental market also remains on a downward trajectory, with rates dropping by 2.6% for houses and 10.3% for units in the year to March 2018, with corresponding average yields of 3.1% and 4.1% respectively.
Yokine has two shopping centres that cater to residents’ buying needs, the Dog Swamp Shopping Centre and Flinders Shopping Centre. It is served by several Transperth buses.
Amenities: Two shopping centres are located adjacent to each other in Yokine
Affordability: The median unit price comes in a just $403,891
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