Dark and difficult days may be behind WA as buying opportunities increase across the state in 2019
Perth is far from reaching its previous heights, as prices continue to be down. However, its prospects are looking rosier and rosier as time goes by.
“While Perth recorded an annual and monthly fall in prices in November 2018, both falls are exactly half of what was recorded in NSW,” reports Charles Tarbey, chairman and owner of Century 21 Australasia.
This suggests that the decline is easing up in WA, and demand is creeping back in.
“I believe that there are excellent buying opportunities in this market and would follow it closely if I were an investor that believed that Perth’s worst days are behind it,” Tarbey says.
“After a horror few years, many believe that WA may be stabilising and the prospects for 2019 look brighter for the market.” Part of this resurgence can be attributed to the mining industry beginning a recovery period, which is helping the economy regain its footing.
“There seems to be a return in mining, but it’s not a mining boom – it’s just a slow return to recovery,” explains REA Group’s chief economist, Nerida Conisbee.
“Employment growth is pretty good – we are seeing strong rental demand. But don’t expect that things will take off the way they did the last time Perth had a property boom.”
Regional centres selling well
The reinvigoration of the mining sector has injected new life not just into Perth but the regional pockets as well.
“The local resurgence in mining projects has had a positive impact on sales in these regions, especially in Kalgoorlie-Boulder and Port Hedland, where renewed support in mining has created more local jobs and helped to boost population growth,” says Damian Collins, president of the Real Estate Institute of WA.
“With mining projects in these regions expected to continue to grow, this should have a positive impact on the regions’ property markets and aid in their recovery.”
As 2018 closed, the most-improved regional centres were Busselton, Port Hedland and Bunbury, where the median house prices rose by 11.2%, 5% and 1.5%, respectively.
“The increase in price in three of the larger regional centres in the state was a big driver behind why regional WA’s overall median house price improved during the quarter,” Collins says.
SUBURB TO WATCH
CLARKSON: Low prices could aid recovery
House values are still falling in the suburb of Clarkson, which sits on the outer edge of Perth. The resulting affordability could support Clarkson’s recovery as both house and unit prices hover within the $300,000–$400,000 range.
The unit market recorded a slight increase in prices of 0.3% over the year to January 2019, taking the median value just past $300,000. This is the first positive growth rate reported since 2014. While the trend remained negative for houses, the rate of decline did ease from double digits to just 5.5% in the 12 months to January 2019.
As a town centre, Clarkson contains many amenities and is a public transport hub for surrounding suburbs.
Amenities: Clarkson’s town centre caters to the surrounding suburbs as well
Affordability: Dwelling prices in Clarkson range from around $300k to $350k
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