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Perth, WA 6000 Review
John
Perth
After a long period of stagnation, the Perth property market has started to show green shoots of recovery. Will the Western Australian capital be able to sustain growth long enough to benefit investors in the long term? Perth, along with Brisbane, garnered the highest level of interest from investors based on the survey conducted by property investment consultancy Momentum Wealth, which collected responses from over 400 investors across Australia.
Overall, 68 per cent believe that it is still a good time to dive into the housing market right now – a significant increase from last year’s 53 per cent and the year prior’s 44 per cent.
Investor interest remained highest in Perth and Brisbane, with 37 per cent and 26 per cent of respondents respectively choosing the capital cities as the best locations to invest in the next 12 months.
Team leader of Momentum Wealth’s buyer’s agents Emma Everett said that the relative affordability and growth opportunities in both Brisbane and Perth are likely to be the primary drivers of continued interest in their property markets.
“While Brisbane’s property market has been recording steady growth for some time, continued improvements in rental conditions and a significant tightening of stock in Perth’s housing sector are now driving the consensus that the property market is moving into recovery phase, with savvy buyers realising the counter-cyclical opportunities at hand,” Ms Everett highlighted.
“Investors are also recognising the value for money these markets offer, especially in comparison to places like Sydney where prices remain significantly overvalued and affordability constraints are pushing buyers out of the capital city market in favour of regional or state alternatives.” Further, Perth is considered as the capital city market with the best long-term prospects – 61 per cent of respondents ranked the Western Australia capital as the location with the highest three-year growth potential.
According to Ms Everett, a number of factors are contributing to a strong long-term outlook for Perth’s residential housing sector, including growth in population and the mining sector.
“While we’re already seeing early improvements across Perth’s rental and capital markets, rising activity in the mining sector, increased infrastructure spending and early signs of accelerated population growth are providing strong indicators for the market’s future performance,” she said.
Moving further into 2020, Perth’s median house price of over $500,000 should be able to provide investors and owners with value gains of 5 per cent in 2020, based on Domain’s Property Price Forecasts for February 2020.
In 2021, the Western Australian capital may experience a further 3 to 5 per cent improvement to prices.
Still, Right Property Group’s Victor Kumar reminded investors to be cautious and do due diligence before investing in the Perth property market.
“We have been buying strategically in Perth for a little while, but it is not a market for the uneducated, given prices remain more than 20 per cent below their peak, with different suburbs all at different phases of recovery, with some still falling,” he said.
Property values
CoreLogic’s February 2020 Home Value Index has found a rebound in the pace of capital gains across the Australian housing market throughout the month, seeing the national index rise by 1.1 per cent.
The strongest capital gains were recorded in Sydney, at 1.7 per cent to $872,934 and Melbourne at 1.2 per cent to a median house value of $689,088, followed by Brisbane ($503,265), Canberra ($631,862), Hobart ($488,968) and Adelaide ($439,453).
For Perth, a 0.3 per cent increase in dwelling values reported for the month is being flagged by CoreLogic as “evidence that the long-running downturn is over”. It’s the Western Australian capital’s fourth consecutive month without a value drop, bringing values to a median of $442,691.
However, despite values now trending higher, “the recovery period is likely to be a long one, with Perth housing values remaining 21 per cent below their peak”, according to CoreLogic’s head of research Tim Lawless. Supply and demand
The week ending 1 March 2020 saw Australian capital city auction volumes reaching their highest levels since late November 2019, according to CoreLogic’s latest auction market preview.
With over 3,000 homes taken to auction, a success rate of 73.9 per cent was achieved.
“The last time the final weighted average clearance rate maintained [such] strength across such a high volume of auctions was back in early 2017,” it revealed.
Breaking down the results by capital cities, Melbourne recorded its busiest week since March 2018, with 1,612 auctions reported. It returned a final clearance rate of 74.8 per cent. Growth outlook
Money has started to move from the east coast to the west as the western property market witnesses recovery, according to a previous Domain study.
According to the study, Perth is likely to see its fastest growth since the mining boom in 2014, which is welcome news for investors who have bought and held during the boom.
The median house price should be $564,000, which, while higher than the current median value, is still 8 per cent below its previous peak.
To take advantage of the potential for future upswings, Property Club president Kevin Young encouraged investors to buy homes in areas where new schools are in the pipeline. Details inside:x
Property market update: Perth, February 2020
After a long period of stagnation, the Perth property market has started to show green shoots of recovery. Will the Western Australian capital be able to sustain growth long enough to benefit investor...
www.smartpropertyinvestment.com.au
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19 Views
16D ago
Roma
Sydney
Clearance rates, Perth’s market and Sydney house and land are all showing signs of improvement, while the market is cautiously optimistic.
605 sales in Melbourne and 426 in Sydney over the weekend. Fewer than the same time last year – 657 in Melbourne, 523 in Sydney. Clearance rates are high – 80% in Sydney and 70% in Melbourne as at Sunday morning
The most viewed home going to auction was 53 Darley Street Newtown, a completely unrenovated terrace home in what is one of Sydney’s most popular suburbs. If you are not from Sydney, take a look at what $1.112 million gets you in this market; 1 bed, 1 bath renovator’s dream. The addition of the bed somehow makes it look worse Sydney house and land is red hot
Building approval data from the ABS has now shown two months of consecutive increases. The flow on from price growth to new development does appear to be occurring. Anecdotally, developers are successfully selling down an overhang of stock from the last building boom.
But for now, it is really house and land that is leading the charge. Likely driven in part by the federal government’s 5% deposit scheme, and the various state-based first home buyer schemes. Details inside:x
Property market update: Cautious optimism buoys th...
Clearance rates, Perth's market and Sydney house and land are all showing signs of improvement, while the market is cautiously optimistic.
www.realestate.com.au
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45 Views
1Mo ago
Sam2019
Sydney
The Australian property market finally started to pick up at the end of last year after suffering a long downturn. After the election results, OpenAgent’s Consumer Sentiment Index saw an increase in price expectations. This outlook is continuing to improve, suggesting that property prices could continue going up. New South Wales
The proportion of New South Wales home sellers believing that prices will be going up within the next six months gradually increased throughout last quarter. By the end of December, 82 per cent believed prices would stay the same and only 6 per cent believed they would go down. Victoria
At the last quarter, home sellers in Victoria were the most optimistic compared to home sellers in the other states. In particular, there was a massive spike from November to December. A large 85 per cent of respondents in Victoria believed prices would be going up during the first half of this year. Queensland
Price expectations in Queensland remained stable all of last year and continued to do so in the previous quarter. About 74 per cent of sellers in Queensland said they believed prices would be going up in the first half of this year. Tasmania
The property market in Hobart has also been improving this year. In January, the median house price ($512,899) went up by 0.9 per cent. Similarly, the median unit price ($398,205) went up by 0.8 per cent. The city is now back to its former peak. Australian Capital Territory
Though the increases in Canberra’s median values over January were quite small in comparison to other capital cities, the market is still back to its last peak. There was a 0.3 per cent increase in the median house price ($701,561), and a 0.1 per cent increase in the median unit value ($441,400). South Australia
Market expectations for South Australia were rather negative in the first half of 2019. However, these significantly improved by the end of year. Western Australia
The market in Perth is finally seeing positive changes. In January, the median house price ($456,803) increased by 0.1 per cent and the median unit price ($352,556) increased by
0.3 per cent. Unfortunately, dwelling values haven’t gone back to their last peak and are still down overall for the past year.
Northern Territory
The Darwin market has a similar story. There has been an overall increase of 0.1 per cent in dwelling values but prices are still well below their peak. Though there was a 0.6 per cent increase in the median house price ($469,834), the median unit price ($275,636) went down by 1.1 per cent.
Market outlook
Solid performance across the nation is a great sign that it’s a seller’s market. If you’ve been waiting for the right time to put your property on the market, this could be it. Read more:x
State-by-state breakdown: Property markets improve...
OpenAgent’s Consumer Sentiment Index saw an increase in price expectations at the end of 2019. This outlook suggests that prices could continue to rise.
homesales.com.au
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37 Views
1Mo ago
Liam
Perth
Since the downturn took hold, commentary on Perth's property market has been wildly mixed.
But one of the state's most renowned housing expert believes looking at the average ups and downs of property prices is too simplistic.
The Australian Bureau of Statistics on Tuesday released its September quarter property price index, revealing Perth's property prices continue to fall, albeit at a slower rate than the previous quarter. Read More -
Perth property market's mixed messages boil down t...
The ABS on Tuesday released its September quarter property price index, which revealed Perth's property prices continue to fall, albeit at a slower rate.
www.smh.com.au
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95 Views
3Mo ago
John
Perth
Perth’s property market has experienced a roller-coaster ride throughout the past 10 years. Will investors see stability and growth for the Western Australian capital at the start of this new decade? The Perth property market saw a small but steady gain in January, sparking positivity that the sector will see continued growth for the rest of the year.
According to CoreLogic, dwelling values in Perth posted a minimal increase of 0.1 per cent over the month. A 0.4 per cent gain in housing values was also recorded in the last quarter, marking the first quarterly increase since May 2018.
Property investors in Western Australia have experienced several ups and downs over the years. From 2000 to 2014, Perth has seen sporadic growth as property prices tripled. However, after the said period, the capital city saw a 30 per cent slump in growth and a significant amount on cash flow.
Most experts believe that 2020 is definitely going to be better than 2019 in terms of movements in the property market, primarily due to international relations and government policies.
Pure Property Investment’s Paul Glossop said the Perth market is transforming. Mr Glossop said that several factors are now coming into play that could bring some changes to Perth’s property market.
During the third month of 2019, Perth recorded a 5 percent growth in the rental market. Data released by Corelogic in November 2019 showed the capital city recording its first month of growth in a very long time in capital gains perspective.
Mr Glossop added that big infrastructure projects (including transportation and healthcare) and other major developments closer to the CBD will likely result in jobs creation and unemployment declining and create a new wave of demand for properties in the West Australian capital. Not only experts are optimistic for Perth at the beginning of this new decade. Investors have a positive outlook regarding the capital city’s property market as well.
According to a survey by Momentum Wealth, property investors have highest interest in Perth and Brisbane, with 37 per cent and 26 per cent respectively naming the capital cities as the prime locations to invest in the next 12 months.
Perth is also now seen as the capital city market with the best long-term prospects, with 61 per cent of respondents ranking the Western Australia capital as the city with the biggest three-year growth potential.
Team leader of Momentum Wealth’s buyer’s agents Emma Everett said several factors including “early improvements across Perth’s rental and capital markets, rising activity in the mining sector, increased infrastructure spending and early signs of accelerated population growth” are giving strong indicators of the future performance of Perth’s property market.
Property values
For Perth property owners, the latest monthly housing value data bears positive news.
Housing values climbed in January across every capital city in the country, according to Corelogic. The CoreLogic Hedonic Home Value Index increased by 0.9 percent over the month, with Sydney and Melbourne posting the biggest gains at 1.1 per cent and 1.2 per cent respectively. Read more:x
Property market update: Perth, January 2020
Perth’s property market has experienced a roller-coaster ride throughout the past 10 years. Will investors see stability and growth for the Western Australian capital at the start of this new decade...
www.smartpropertyinvestment.com.au
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35 Views
23D ago
Rockingham
A statement from the government of Western Australia has said that subject to development approvals, approximately 900 residential lots are to be developed in the coastal suburb of Port Kennedy from crown land over the next decade.
Approximately 55 kilometres south of Perth, the suburb is located on the coast within the City of Rockingham.
The project is set to deliver 400 local jobs and $15 million in public works through development of the lots and associated community infrastructure, as well as see Port Kennedy’s retaining and improvement of an existing golf course and development of a new main street and town centre comprising of offices and shops.
Commenting on the development, planning minister Rita Saffioti said, “We must plan for future employment and infill development opportunities that are close to public transport and are where people want to live, in growing suburbs like Port Kennedy.” Details inside:x
WA to nurture new coastal community
Nearly three decades of negotiation has finally seen the transferal of 66 hectares of land for a new coastal community in the outer suburbs of Perth.
www.smartpropertyinvestment.com.au
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32 Views
2Mo ago
Perth
Recent data analysis shows the suburb 12km north of Perth, which was annexed from Balga in 1994 after lobbying from residents, had the cheapest median weekly rent at $300 last year.
Perth’s northern and eastern suburbs were heavily represented in the top 10 most affordable rental suburbs within 30km of the city, with Ashfield, in the east, the second cheapest at $315 a week. Janet Strunk, senior property manager from Professionals Michael Johnson & Co, says crime is a big factor in many of the cheaper suburbs, which resulted in lower rents. She says some tenants request security screens, roller shutters and additional safety options on their rental applications.
10 cheapest WA suburbs to rent within 30km of the CBD in 2019
Westminster $300pw
Ashfield $315pw
Kewdale $320pw
Nollamara $320pw
Osborne Park $320pw
Cloverdale $330pw
Embleton $330pw
Balcatta $350pw
Belmont $350pw
Bentley $350pw Read more: x
Cheapest rental suburbs in WA in 2019 - realestate...
Westminster is Perth’s most affordable suburb to rent within 30km of the CBD, new data has revealed.
www.realestate.com.au
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34 Views
1Mo ago
Royal
Sydney
With property prices rising, the five locations that will see even bigger growth have been revealed. With two notable cities missing. It seems there’s no stopping Sydney and Melbourne’s extremely hot property markets, with several months of strong price growth continuing into the new year.
But there are storm clouds on the horizon, a leading expert warns, with savvy investors beginning to focus their attention elsewhere.
In what’s traditionally a quiet month, the sharp real estate growth trend continued in January – and not just in the two biggest markets – with prices rising in every capital across Australia.
Median dwelling values were up 1.1 per cent in Sydney, adding to a total annual increase of 7.9 per cent, and rose 1.2 per cent in Melbourne, for a yearly rise of 8.2 per cent.
And in a sign that buyers remain extremely confident, auction clearance rates in the NSW capital for the first weekend of February were a staggering 77 per cent. Details inside:x
How high can Sydney property prices go?
It seems thereâs no stopping Sydney and Melbourneâs extremely hot property markets, with several months of strong price growth continuing into the new year.
www.news.com.au
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62 Views
1Mo ago
Royal
Perth
Perth’s southern suburbs are leading Perth’s property revival, being among the most sought-after areas for buyers.New figures from the Real Estate Institute of WA have revealed the most in-demand suburbs for buyers in 2019 Last year, 72 properties sold in Lakelands, where there was a 36 per cent increase in sales activity - the biggest of any region in the metro area. Nearby Waikiki recorded 152 property sales, representing a 21 per cent increase. 2019 was again a muted year for the Perth property market, with a decrease of five per cent in sales volume.Last year, sales activity in Perth decreased five per cent, while 57 suburbs bucked this trend to show an increase in activity, with Lakelands demonstrating a 36 per cent increase. List of top 10 selling suburbs in Perth: Last year it took 39 days on average for a house to sell in Wembley, the quickest in the Perth metro area. Other inner-city suburbs such as West Leederville, Nedlands, Shenton Park and Mount Claremont also featured on the list, taking less than 50 days. Quickest/Fastest selling suburbs in Perth 2019: Source:x
Hot property: Perth's top selling suburbs and ones...
Last year it took 39 days on average for a house to sell in Wembley, the quickest in the Perth metro area.
www.watoday.com.au
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157 Views
2Mo ago
Royal
Perth
With economic activity in Western Australia well below its ten year average and effective unemployment significantly above the ten year benchmark, the property market, particularly units, continue to experience weakness. Western Australia is still in a long transition process from a mining-oriented economy and while unemployment has slightly improved from 6.1% in April to 5.7% in October, it is still projected to deliver low economic growth, a soft job market and low population growth. Limited suburbs of Western Australia delivering growth Perth was "very affordable", there were a small number of suburbs where houses delivered reasonable capital growth in recent years, but these were exceptions only. Some of the worst performing areas for houses in the past year include Perth - North East (-8.8% capital growth), Perth - Inner (-8.4%) and Perth - South West (-7.3%). Read more:x
Western Australian property market remains bleak
With economic activity in Western Australia well below its ten year average and effective unemployment significantly above the ten year benchmark, the property market, particularly units, continue to ...
www.savings.com.au
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117 Views
2Mo ago
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