The Perth market could finally be on the brink of stabilising, as both activity and sales prices improve
Following a prolonged period of seeing prices fall, Perth is at last seeing improvements in the market.
“The Perth market found its floor and stabilised in the back half of 2017. We now appear to be entering a recovery phase,” reports Hayden Groves, president of the Real Estate Institute of Western Australia.
REIWA data from December 2017 suggest that key figures like median prices, sales activity, listing levels and average time on market all looked better than before. For instance, the final median price for the December 2017 quarter is already expected to be significantly higher than that of the September 2017 quarter.
“It’s encouraging to see Perth’s house and unit medians increase over the quarter because it suggests one sector hasn’t recovered at the expense of the other ,” Graves adds.
“On an annual basis, the Perth market is very stable. We’ve observed consistent price levels between the December 2016 and 2017 quarters which is a strong signifier the market has turned a corner.”
Units could become more popular
With the number of buyers looking to downsize as they reach retirement age, high-density living near amenities is increasing in popularity in Perth.
“Traditionally, the Perth real estate market has been dominated by larger family-style homes but this is now rapidly changed due to our ageing population and the fact that more people are living alone,” comments Shane Kempton, COO of Professionals Real Estate Group in WA and NT.
“This population shift will have major implications for the Perth real estate market and in particular result in a growing demand for higher density homes.”
In the outer rings of the city, apartments are being developed in suburbs like Rockingham and Midland. In fact, over 100 such properties were approved for construction in Joondalup alone during the latter half of 2017.
“This downsizing trend will set to accelerate as the population of Perth continues to grow and the government seeks to encourage higher density living to limit urban sprawl,” Kempton predicts.
“The pressure to encourage higher density living in Perth has been highlighted by recent population projections by Infrastructure Australia, who predicted that the population of Perth could surge to 4.4 million people by 2046.”
SUBURB TO WATCH
NEDLANDS:
An interesting exception to the rule of the property market in WA lately, the premium suburb of Nedlands is flourishing despite its high house prices.
The median house value is well past $1.5m, but this hasn’t stopped prices from increasing consistently, if gently, through the 2013-2018 period. This is a good sign for this affluent area just 7km from the Perth CBD.
Part of Nedlands’s success comes from its ability to cater to different demographics. Students at the nearby University of Western Australia can find affordable homes here, while expensive properties populate the southern part of the suburb. Nedlands is also a medical hub, with Sir Charles Gardner Hospital and the Lions Eye Institute being located here.
Amenities: Nedlands is home to several public and private medical facilities
Growth: It may be one of the few suburbs to recently record positive growth in WA
