If you’ve been looking to buy property in recent years, you’ve definitely had the upper hand. Prices across Perth declined by up to 25.4% in the decade to 2017, ensuring buyers could take their time while negotiating a good price.
But things may be turning around.
A number of indicators point to the market starting to gain strength. If you’re keen to purchase, now could be the right time to make your move. Delay too long and you could end up paying more for the home you desire.
One of the early signs the market is shifting gear is a 20% increase in rental demand. This is mostly driven by population growth from interstate, especially Queensland. According to the experts, when people relocate to a new city, they typically rent before eventually buying a home. So stronger rental demand could be a harbinger for stronger buying demand in the medium term.
A further indication that the market is starting to pick up steam is the recent performance of high-end properties. With analysts describing Perth’s real estate market as “two-speed”, it is clear that properties in blue-chip suburbs such as Bicton, Nedlands and Subiaco are starting to appreciate in value following a prolonged hibernation since the end of the mining boom in 2014.
Perth saw a 2.7% jump in the top-end market over the 12 months to June 2018, including a 1.5% jump in the second quarter of 2018.
With such a pronounced turn-around at the top-end, it is likely that other sectors of the market will follow suit. In fact, the ripple effects to second-tier suburbs may have already started. Quarterly statistics for the three months to June 2018 show significant price growth in more affordable suburbs with good access to the city and amenities. Como saw prices surge by 20.3%, while Bull Creek and Mt Lawley had price increases of 20.1% and 19.8% respectively.
Over the course of winter, property prices remained fairly stable. This indicates that the decline of recent years has started to level out. With the warmer weather starting to bring out more buyers, it is likely that an increase in demand will start to nudge prices upwards.
The outlook for the West Australian economy over coming years is strong. With historically low-interest rates, an expected increase in mining activity and associated jobs growth, there is every possibility that the market will begin to turn over coming months.
It’s an outlook shared by investors. As real estate prices in Sydney and Melbourne struggle, many interstate investors are looking to Perth as a place to earn a great return. This helps drive up demand and prices, particularly in the apartment sector. Unit prices, while still below their 2014 peak, have increased by 1.7% in the year to June 2018.
Experts are particularly confident about the inner city, expecting a 3.3% rise in property values this year, followed by a 4.1% rise in 2019. Meanwhile, the south-west suburbs could see a 2.3% increase in 2020.
With such strong indications of a turn-around, anyone looking to buy real estate in Perth should not be complacent. Make your move now to secure your dream home, before rising prices limit your options.
How can Mint Real Estate help you?
At Mint Real Estate, we have a wide range of properties to suit all families and budgets. Whether you’re an owner-occupier or looking for an investment, speak with us today to secure your ideal property at a great price!
Please give us a call on 08 9284 6000 or click here to contact us.
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