The Perth property market has experienced a lot of ups and downs over the past decade, which has ultimately had a significant impact on the growth of property. Over the past year, a range of measures were introduced to help boost the property market including Keystart income limits and the stamp duty rebate, combined with low interest rates, mining sector improvements and economic conditions. While property experts are saying that the full effects of these have not been felt yet, there is a lot of hype in the industry that Perth may start to see more ups over the coming year.
Add in increasing property prices and a strong rental market which saw vacancy rates drop consistently over the year, WA property experts are feeling more and more positive about 2020.
The ANZ Bank have recently revised forecasts for house price growth throughout 2020 and now expect the overall property prices to rise by nearly 6% in 2020 compared to their previous forecast of 3%.
Source: ANZ Bank
UDIA WA Chief Executive Tanya Steinbeck has said that this time last year, we were predicting that residential property market conditions would be flat for at least 12 – 18 months before a potential upswing. While we are still waiting for a substantial and consistent uplift in the market, we remain positive about the indicators signalling that the worst of the downturn is behind us and that we’ll likely see stable conditions throughout 2020.
Premier Mark McGowan and Housing Minister Peter Tinley’s also recently announced $150 million Housing Investment Package in 2020 which is set to include a 300+ social housing construction program and a six-month extension to Keystart threshold changes.
Overall, WA will likely remain as one of the most affordable capital cities for home ownership throughout 2020. However, the fundamentals in the WA economy are all positive – which means now we just need confidence.
Perth Rental Market
The Perth rental market remained strong throughout 2019, with solid median rents, leasing activity levels, declining listings and a decreasing vacancy rate which is now sitting at 2.3%.
This trend is expected to continue through 2020 as we see consistent demand, improving population growth and reduced supply.
Perth has recorded an overall median rent price of $350 per week since April 2017, according to REIWA’s data, this is the longest period of stable rents experienced since 2001, however this is expected to change in 2020.
Rental listings are 14% lower than levels seen this time last year. Combine this with new build stock decreasing and low vacancy rates, we should expect to see a gradual lift in the median rent.
The top Perth rental suburbs for the week ending 26 January 2020 were East Perth, Perth, West Perth and Baldivis.
The Perth suburbs with the most available rental properties are East Perth, Perth, South Perth and Scarborough.
Perth Sales Market
Sales activity increased 9% towards the end of January 2020, with REIWA members reporting 638 sales transactions. This increase can be attributed to a 9% rise in house sales, a 15% rise in unit sales and a 5% rise in vacant land sales.
According to REIWA president Damian Collins, 2020 is expecting to see some positive changes in the market with improved sales activity, the return of more investors and a gradual increase in rental prices. Perth’s population has also been steadily improving which means we may start to see a lift in the median house price in pockets of Perth over the next 12 months.
The full impacts of interest rate cuts and initiatives put in place in 2019 have not taken full effect yet, we expect that the onset will be seen later in the year ahead.
Top selling suburbs this week North of the river: Dianella, Scarborough, Butler, and Cottesloe
Top selling suburbs this week South of the river: Victoria Park, Piara Waters, Baldivis, and Como.
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