Perth property market outlook 2018

Perth’s property market is now in a state of recovery, with positive growth and a healthier turnover of stock forecast.

Pindan Sales Manager, Matthew Smith, said it was widely believed 2017 saw the market bottom out and signs were positive for 2018, with eager buyers expected to snap up stock that has been on the market for too long. 

Matthew said it was a great time for first-homebuyers, investors and owner-occupiers to buy.

“Many people have been sitting back waiting over the last two to three years,” he said.

“People have been keeping their homes longer than the usual seven-year turnover. A new positive market will get them ready to buy again.”
Matthew Smith

In particular, Matthew predicted the apartment market should see a good sales rate for completed apartment stock. 

“This will reduce available numbers and get ready for some new exciting projects to hit the market,” he said.

In the East Coast, stock has boiled over with sales slowing and previous boom pricing no longer achieving the same results, Matthew said.

“Perth is now the place to buy if you are an investor, over the east coast,” he said.

 “There are also many Perth owner-occupiers that have been waiting for Perth to hit a recovery phase before they do anything.”

Pindan Director of Development Management, Nick Allingame, said data was beginning to confirm the positive sentiment that has been building, with recent building approval figures indicating increased growth. 

The Australian Bureau of Statistics’ monthly Building Approvals figures showed the number of total dwellings approved in WA trended upwards, with an increase of two per cent in September.  

Nick said this was the fifth consecutive month dwelling approvals had increased, reflecting a growing level of activity in the new home market. 

“Importantly for the broader economy, the value of residential building in WA is also up to $511.9 million for the month.  That is up from $510.9 million in the previous month and $489.6 million in January this year,” he said.

“This increase in value has a positive flow on effect to a range of building and related industries.”  

The health of the property industry in WA was critical to the broader state economy given that the construction industry was the second largest employer in the state, Nick said.

The Urban Development Institute of WA’s Urban Development Index recorded increased sales in Greater Perth of 8.9 per cent on a year-on-year basis.

The most recent quarterly data also showed a 3.7 per cent increase in the average price of new land. 

“Overall, the latest data is good news for WA homeowners and people looking to buy as we can expect further positive growth in Perth’s property market for 2018,” Nick said.

Source: Pindan

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