Conditions have improved significantly in the Perth property market, with stable conditions noted in the September quarter, according to the Real Estate Institute of Western Australia (REIWA).
“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results,” said Hayden Groves, president of REIWA. “Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment.”
According to Shane Kempton, CEO of Professionals Real Estate Group, the significant decline in the overall number of properties listed for sale is another major indicator of recovery.
Data from CoreLogic’s latest Housing Market Update shows that the total number of properties listed for sale in Perth had fallen by 14.3% for the past 12 months ending in October 2017.
“This was the biggest fall recorded by any capital city in mainland Australia,” Kempton told The Real Estate Conversation. “Other capital cities to record falls in property listings were Melbourne (-1.7%) and Darwin (-1.9%). In contrast, listings increased in Sydney (+19.5%), Canberra (+14.4%), Adelaide (+8%), and Brisbane (+2.5%).
“This major fall in overall listings is very positive news for the Perth property market as there has been an oversupply of homes in the city, causing a downward pressure on property values over the past three years.”
A major factor in Perth’s declining listings has been the attendant pick up in property sales.
“Corelogic figures show that over the past year, overall property sales in Perth lifted by 1.8% compared to significant falls in Sydney, Brisbane and Melbourne,” Kempton said. “In Melbourne, for example, the total over of property sales fell by 11.8% over the past year.
“Professionals expect property sales in Perth to gain greater momentum over the coming year based on the growing affordability of properties in the city. At the same time, the state economy is improving with a significant boost in full time employment, which is boosting confidence amongst first-home buyers.
“If you plan to buy property in Perth, now is the perfect time to do so before the overall property market begins to move forward in 2018 and the fall in listings continues, meaning buyers [will] have fewer homes to choose from.”
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