Statistics point to a turnaround in Perth as house prices record increases and vacancy rates drop sharply
WA has spent a prolonged period in the slumps, but recent data suggest we could be looking at a rejuvenated market well into 2019.
The Real Estate Institute of WA (REIWA) reported a boost in Perth house prices in November 2018, the second straight month in which values increased in this capital – a very positive sign indeed. “Perth’s median house price has been fairly flat throughout 2018, so it’s pleasing to see two consecutive months of median price growth,” says Damian Collins, president of REIWA.
“REIWA analysis shows there was a shift in the composition of sales in November, with a greater proportion of transactions occurring above $1m than there were in October. This has contributed to the increase we’ve seen in Perth’s median house price this month.”
Listings also increased between October and November, as sellers looked to get into the market before the holiday season hit.
“With listing stock rising, buyers have a good supply of choice available to them, making it a very good time to buy,” Collins says.
Perth’s economy picks up
The resource sector may have been a significant driver of Perth’s decline in the past several years, but for Propertyology managing director Simon Pressley this industry could turn the state’s economy around once more.
“World demand for commodities such as iron ore, coking coal, gold, copper, thermal coal, gas, lithium and others is driving a new wave of increased mining production that includes a $75bn project pipeline in WA,” he says.
With WA’s economic prospects on the upswing, the property market’s future is starting to look good again. In response, the population is beginning to see growth – CBRE reported that the state recorded an increase of 21,000 residents over the 2017 to 2018 period.
“This is the first step in the recovery of Western Australia. It’s really exciting, as there are two real positives that come out of the population growth,” says Craig Gemmill, managing director of Gemmill Homes.
“Existing housing stock gets soaked up. That affects supply, and people then go to the next level of pricing or they build. It will really stimulate the market.”
SUBURB TO WATCH
MANDURAH: Affordability increases as prices fall
Perth as a whole is entering a recovery period, but there is a long road ahead, especially for suburbs like Mandurah where property values are still decreasing.
In the year to December 2018, house and unit prices dropped by 9.6% and 13.2%, respectively, continuing the negative trend observed since 2013. Weekly rents also slipped by 3.6% to an average of $270.
As a gateway to southwest WA, Mandurah is a highly popular destination for holidaymakers, given its wealth of waterways. Restaurants and cafes offer excellent views, and favourite activities include boating, birdwatching, dolphin watching and cultural walks. The CBD is also well stocked with shops.
Amenities: Mandurah’s CBD has plenty of shops, cafes and restaurants
Tourism: Mandurah is popular with tourists due to its location near the water