WA property market outlook 2019
There is no doubt the start to 2019 has been challenging in the property market. However, with rents on the way up and rental vacancies declining – will we see a change in the back half of 2019?
Hear what the experts have to say:
Perth’s vacancy rate falling the fastest
According to a recent report by Domain
, the Perth rental market has the fastest falling vacancy rate.
With a number of suburbs seeing upward movement in rental prices and the vacancy rate the lowest it has been in six years, pressure is likely to be placed on the sales market soon.
Suburbs such as Nedlands, home to our new boutique apartment development Aviva on Broadway,
have been in high demand in the last 12 months, with strong leasing activity and average rents up by 5%.
Sales Consultant for Pindan Realty, Nicola Tobin, said this should start to filter through to the sales market in the back half of 2019.
“It will take a while for buyer confidence to return. However, I think once the Federal Election done, we will start to see that slight upturn,” she said.
Bottom of the cycle
The decline in pricing has slowed to its lowest level since June 2018, indicating that the Perth property market might be approaching the bottom of the cycle.
REIWA’s Damian Collins recently said, “although the Perth residential sales market remains subdued, the data for March shows some signs that price values may be starting to strengthen in some areas after a prolonged period of declines.”
Nicola Tobin, agrees. “I believe we’re at the bottom of the market as we are just starting to seeing signs of improvement,” she said.
Perth is affordable and with changes to Keystart the First Home Buyer market is likely to kick-start the market
In another report by Domain,
Perth is noted as the second most accessible capital city for purchasing a home, with relatively low entry-level prices and a quick path to purchase.
Dane Rawlings, also a Pindan Sales Consultant, said he was seeing this in the developments he was selling.
“We have seen a large amount of first home buyers looking to get into the market, thanks to sharp price points.
“Likewise FIFO workers and downsizers who are looking for an affordable lifestyle change in developments like The Reef at Two Rocks.”
Nicola Tobin said affordability was key, for first home buyers in particular.
“We have seen keen buyers struggling to get finance in the first half of 2019,” she said.
“With the banks and lending institutions tightening up their rules, it has been tough.”
“With a good savings plan and affordable properties on the market, I believe we will see more first home buyers making their move in the second half of 2019.”
Nicola and Dane both welcomed a recent announcement
by the State Government regarding changes to the Keystart programme.
“This temporary increase to income limits will mean more buyers have access to affordable loans, providing a much needed boost to the market,” Nicola said.
Dane agreed with Nicola, saying he believed the announcement would see in an increase in activity in the second half of 2019 as a result, especially in the First Home Buyer market.
“When we start to get movement in the First Home Buyer market, it also pushes through to the second and subsequent home buyer markets so I think we will start to see an upward trend in property prices soon,” he said.
Perth was recently listed as Australia’s second most livable city in realestate.com.au’s ‘Life in Australia Index’,
just a few points behind our country’s capital Canberra.
The ranking is based on five values including safety, health services, housing affordability, job prospects and public transport.
“Perth is a great place to live and indexes like this help showcase that. With so many new developments on the market now in great suburbs and areas, it is a great place to buy,” Nicola said.
Dane said he too had been seeing buyers driven by lifestyle choices.
“Buyers have been attracted to properties which provide them with a great lifestyle, whether that be being close the beach, shops, schools or the river,” he said.
“This is why properties like our developments The Reef at Two Rocks
close to the beach or our Subiaco Apartments
close to cafes and shops continue to be so popular.”
The Final Word
Nicola and Dane agree that the second half of 2019 is likely to see some movement and that we are likely firmly at the bottom of the market now.
They both see the First Home Buyer market being the first to move, with rental pressure evident and also the State Government’s temporary changes to Keystart lending criteria.
“My advice to people who have been waiting to buy is to start your research now. I think we will start to see an increase in pricing through the end of 2019 and into 2020,” Dane said.
If you are considering making your move in the Perth property market, get in touch with our sales team who would be happy to help answer any questions. Pindan has a huge range of properties across the Perth Metropolitan area.