There have been several articles coming out of the West coast in recent months indicating that the fall in prices may have been arrested and that additionally an undersupply is occurring in some locations. Just this week the Real Estate Institute of WA released an article stating that ‘conditions have improved in the PERTH property market’, ‘we have observed 6 months of stable conditions’ through both the June and Sept quarters. Historically we know that before a market improves, there is a sustained period of levelling stock, sales activity and house prices. This would appear to be the case at present.
A second key driver of prices rising is a fall in supply. Perth stock levels have fallen by approx. 14% in the 12 mths ending Oct 2017 and there are now reports of undersupply in 95 of Perth’s 244 Suburbs.
RpData Core logic report a lifting in sales volumes in Perth of some 1.8% compared to falls in Sydney and Melbourne of approx. 11%. This would suggest a confidence coming back to the market.
This confidence returning may well be based on the improving state economy which has seen a significant boost in full time employment, the emergence of the Lithium market and outstanding Government expenditure on Infrastructure and services.
Many professional bodies are now prepared to back a growth phase, suggesting that Perth will gain momentum through 2018, based on affordability, employment growth and economic factors.
If you plan to buy in Perth, or just want to have a little explore of the options, now is the perfect time to do so. Capture the expected growth, by investing now and riding the next cycle.
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Would you like to know more or speak with a specialist? Contact Launch Properties on (02) 9009 2428