18 August 2017
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15 August 2017
Rachel Preston-Bidwell via reiwa.com.au
Perth home buyers looking to trade up are now seeing more opportunity in areas such as Peppermint Grove, Applecross and North Coogee, which topped reiwa.com’s list of affluent suburbs which have become more affordable.
REIWA President Hayden Groves said while prices in these suburbs were still well above the Perth median house price, they had become more affordable for buyers looking to trade up into those million dollar suburbs.
Peppermint Grove saw the biggest annual average change in its median house price over the past five years, shifting from $3,750,000 (year to April 2012) to $3,350,000 (year to April 2017).
“Buyers are looking for opportunities in areas with a good lifestyle scene, cafes and restaurants. In particular, we are seeing buyers placing more importance on proximity to good public schools.
“Suburbs such as Applecross, Nedlands and Peppermint Grove are within the catchment for some of Perth’s best public schools. Due to the easing off in median house prices of these suburbs, the opportunity is there to secure your ideal family home if you have the means,” said Mr Groves.
There’s also good news for sellers in Applecross, City Beach, Nedlands and Peppermint Grove, as properties are selling quicker in comparison to five years ago.
“In 2012, it took on average 120 days to sell a property in Peppermint Grove for instance. In more recent figures, the average selling days for the suburb sits at 90 days.
“We are also seeing sellers willing to negotiate and discount their initial asking price to achieve a sale,” said Mr Groves.
The average discount sellers in the five suburbs are applying to their asking price is around the eight to ten per cent mark in the year to April 2017 data.
“Both buyers and sellers are benefitting from the current market conditions in these million dollar suburbs,” said Mr Groves.
||MEDIAN HOUSE PRICE (YEAR TO APRIL 2012)
||MEDIAN HOUSE PRICE (YEAR TO APRIL 2017)
||AVERAGE SELLING DAYS (YEAR TO APRIL 2012)
|| AVERAGE SELLING DAYS (YEAR TO APRIL 2017)
|1. Peppermint Grove
|3. North Coogee
|4. City Beach
Figures based on median house prices in the year to April 2012 versus year to April 2017. Filtered for suburbs with greater than 15 sales, with a median house price of more than $1 million.
02 August 2017
Nicole Cox via realestate.com.au
Perth’s house prices took another dip in July, but the outlook is brighter for owners of units and apartments with an improvement in values, new data from CoreLogic shows.
Perth retained the unenviable title as the weakest performing property market in Australia, with a combined drop in dwelling values of 1.3% for July.
The CoreLogic Hedonic Home Value Index reveals that unit prices surged 1.8% in July and 4.2% in the past three months to a median price of $400,000, but house prices dropped 1.6% last month to return a 2.5% decline since the same time last year.
The median house price in Perth is now $498,200.
CoreLogic says there has been a slowdown in growth conditions in the hottest markets of Sydney and Melbourne.
At the other end of the growth spectrum, Perth and Darwin have continued to see dwelling values slip lower during July, taking the cumulative decline to 10.2% in Perth and 14.5% in Darwin since both markets peaked in 2014.
“The ease in the rate of decline has been most visible in Perth, providing a signal that the Western Australian capital may be approaching the bottom of the downturn,” the CoreLogic report found.
“Listing numbers have been falling across Perth which is a positive sign of improving conditions and transaction numbers have found a new floor at around 2500 sales per month.”
CoreLogic Head of Research Tim Lawless says while the market has slowed from recent highs, growth remains robust.
“I don’t think there is any one factor causing the market to lose steam, rather it is the culmination of several factors working together,” Lawless says.
“Higher mortgage rates and tighter credit policies have dented investor appetite. This is clear from the RBA’s monthly credit aggregates which show investment related housing credit growth has consistently slowed from late last year.”
He says higher mortgage rates are now also impacting on interest only loans as well as fixed rate loans, which is likely to further deter some prospective buyers.
25 July 2017
Perth sellers struggling to sell should look at going to auction, with reiwa.com data revealing it was 42 days faster to sell by auction in the metropolitan area than by private treaty in the three months to June.
REIWA President Hayden Groves said while auctions represented a small component of the Perth property market, those sellers who did choose to list their property for auction were experiencing significantly faster selling times.
“On average, it takes around 70 days to sell by private treaty in Perth, but sellers who go to auction are achieving sales in as quickly as 28 days,” Mr Groves said.
“In this market, when there is plenty of competition between sellers to secure a buyer, standing out from the crowd is paramount. Selling at auction has plenty of benefits for the vendor, with a short but high profile marketing campaign bringing serious buyers to the forefront quickly.
“You also have the security of knowing if your home doesn’t sell at the fall of the hammer, you can continue to negotiate a purchase price with those interested buyers after the auction using the more familiar private treaty method.”
reiwa.com data shows auction sales in Perth peaked in December 2016, lifting to 2.31 per cent of total sales activity in the metro area for that month, before returning to just below two per cent by March 2017.
“Auctions are still relatively unfamiliar to West Australians, but you only have to look to the East Coast, particularly Sydney and Melbourne, to see how successful this method of selling can be. I encourage WA sellers to speak with their real estate agents about whether auctions are the right fit for them,” Mr Groves said.
Here at Porter Matthews Metro we have a well thought out Auction process and success rate, if you have queries as to how this method might suit you, please give us a call on 9475 9622 or email us at email@example.com
18 July 2017
July 14, 2017 6:00am
Perth’s property market could be about to turn the corner, experts say.
WA PROPERTY markets could go from the nation’s worst to its best-performed over the next two years as buyers regain confidence in the State and go cold on the rest of the country.
National Australia Bank analysis suggests WA has reached the bottom after several years of falling property prices, growing rental vacancy rates and the biggest fall in rents since the early 1990s.
NAB chief economist Alan Oster said there were clear expectations among property analysts that the WA market would improve relative to the rest of the country over the next two years.
“In WA, where the local housing market has under-performed relative to the Eastern States after the mining investment slowdown, house prices are expected to rebound and grow 1.3 per cent,” he said.
Experts surveyed by NAB believe Armadale, Bentley, central Perth and Scarborough look the best prospects in the city.
Sydney and Melbourne have seen double-digit price increases in the past two years but the NAB survey believes these two will slow down.
Victoria’s market is tipped to be the weakest within two years, with WA vying with Queensland for top spot.
The improvement in the WA market is tied to a lift in the jobs market.
The survey found employment security was the single largest impediment for buyers of existing property in WA but, with signs the jobs market has bottomed and may be improving, this is tipped to be less of a negative in the next two years.
Mark Passmore, of Passmore Real Estate in Morley, said there had been a noticeable lift at the higher end of the market, which was a sign the entire market was shifting.
He said interest was growing in sought-after suburbs where prices had dropped over recent years as confidence in the overall market and economy had improved.
“You can feel that the market is at a pivotal point,” Mr Passmore said.
He said a drop in the price of land had brought developers back into the market while more varied selling methods, such as auctions, were being used to get buyers back.
14 June 2017
Jennifer Duke via domain.com.au
Housing was a hot button topic for the 2017/2018 federal budget, so it’s no surprise there were a raft of changes for real estate.
The new measures have impacted on a variety of housing rules from first-home buyers’ savings strategies to what investors can claim at tax-time.
Here are the five big announcements to know about.
More supply is just one part of the housing push with a raft of initiatives rolled out in the 2017/2018 federal budget. Photo: Pat Scala
1) Foreigners can only buy up to 50 per cent of a development
Under the new budget rules, developers will no longer be able to sell every property in their new development to overseas buyers.
Instead, a maximum of half the development can be sold to foreign buyers with the rest to be sold locally. The budget documents note this is to provide a “clear message” that new housing stock is expected to increase supply for Australian buyers.
Before this change developers required pre-approval to sell properties to foreign buyers but there was no limit on the proportion of sales.
Effect on revenue: No impact
In place from: May 9, 2017
2) First Home Super Saver Scheme
First-home buyers weren’t ignored by the budget with a new First Home Super Saver Scheme announced. The new super saver scheme will allow first-time buyers to put up to $15,000 a year, to a maximum of $30,000 under the scheme, into their superannuation.
These funds can later be withdrawn for a home deposit, including any earnings the deposits made.
This means they will have a tax incentive to save more, and it can be taken advantage of as a couple with each claiming $30,000.
Effect on revenue: Cost of $250 million ($9.4 million funding given to ATO)
In place from: July 1, 2017 (contributions), July 1, 2018 (withdrawals)
3) An ’empty home’ tax on foreign investors
Foreign investors who keep properties vacant for more than six months will be faced with a vacancy tax. This is described as a charge on “underutilised residential property”.
The cost of this tax will be the equivalent of their foreign investment application fee – some several thousand dollars – and will be charged annually.
This change is intended to get more vacant homes onto the rental market.
Effect on revenue: Gain of $16.3 million ($3.7 million funding given to ATO)
In place from: May 9, 2017
4) Stopping investors from claiming travel deductions
Investors who previously had tax deductions for travel expenses related to their investment property will no longer be able to make these claims.
The government has ruled them out, even for those travelling to collect rent, maintain or inspect a premises, saying many have been incorrectly obtaining this deduction. This has included situations for “private travel purposes”.
Effect on revenue: Gain of $540 million
In place from: July 1, 2017
5) Retirees given incentives to downsize
Australians aged over 65 who sell their home of a decade or more will soon be able to put up to $300,000 in sale proceeds into their superannuation.
This incentive to downsize is expected to help free up larger homes for families to move into.
Effect on revenue: Cost of $30 million
In place from: July 1, 2018
14 June 2017
A new rental affordability study has highlighted the challenges very low and low income households face in Perth’s private rental sector.
The study, Housing Affordability (Rental) – A study for the Perth metropolitan area, looks at rental affordability for households on very low (less than $43,000), low ($43,000-$69,000) and moderate incomes ($69,000-$103,000), and is the result of a second collaboration between the Housing Authority, Real Estate Institute of Western Australia (REIWA) and Shelter WA.
The report found:
- There is insufficient affordable rental options in Perth’s private rental sector, which is placing pressure on the region’s social housing system.
- 35 per cent of Perth rental households fall into the lower income categories, however only 19 per cent of rentals in Perth in the 2015-16 financial year were affordable to very low or low income earners.
- Perth’s rental stock lacks diversity, with over 70 per cent of all rentals across the metropolitan area have three bedrooms or more.
- The central sub-region contains the bulk of affordable rental housing in Perth. It provides 65 per cent of affordable housing for very low income earners and 49 per cent for low income earners.
REIWA President Hayden Groves said all sectors of the property market need to work together to increase the number of affordable rental properties.
The Housing Authority’s General Manager Strategy and Policy Tania Loosley-Smith noted that although the Western Australian property market has been in a cyclical downswing for the past few years, there is still a significant shortage of housing that is affordable for Western Australians on low incomes.
“By a range of measures, this shortage has entrenched over decades and deepened in the last 10 years. It affects our vulnerable citizens, as well as the key workers who are the backbone of our economy,” Ms Loosley-Smith said.
“The Housing Authority is committed to addressing these challenges in order to ensure Western Australian families, our local communities, and our economy thrive. That said, achieving these outcomes needs both Commonwealth and State leadership.”
Ms Loosley-Smith said she welcomed the Commonwealth Government’s commitment to establish a National Housing Finance and Investment Corporation, and its focus on models to increase affordable rentals for people on low incomes.
“Large scale market investment in our rental sector, particularly at the affordable end of the market, is the missing part of the Australian housing continuum and can only be tackled effectively at a national level. This, combined with ongoing funding for the social housing system under the National Affordable Housing Agreement and ongoing State efforts on housing supply and diversity is critical to ensuring that all Western Australians have a place to call home,” Ms Loosley-Smith said.
At the state level, the Housing Authority in late 2016 launched the Assisted Rental Pathways Pilot. According to Ms Loosley-Smith, this innovative initiative provides opportunities for social housing applicants—with the desire and means—to move successfully into the private rental market.
“This Pilot is a unique partnership between the government, not-for-profit support providers and participants. It offers rent subsidies and individually tailored support services for up to four years to help people succeed in the private rental market. The project offers benefits for both participants and landlords, and is important in addressing the key finding of the study—the lack of affordable rentals in Perth, despite a high overall rental vacancy rate.”
Mr Groves said housing affordability was a critical issue for West Australians and the report emphasised the glaring need for a greater emphasis on the provision for affordable, accessible and appropriate housing options.
“It is clear that the current stock of private rental accommodation does not meet the needs of our community and more needs to be done to address the requirement for choice and housing diversity. The planning system needs to mandate and address housing diversity within the WA planning system,” Mr Groves said.
Shelter WA spokesperson Stephen Hall said the research highlighted the lack of accessible and affordable private rental accommodation in Perth for very low and low income households, with only a small number of three or more bedroom properties available to these income brackets.
“This research shows that only a small number of three or more bedroom properties are affordable for lower income families. Shelter WA is concerned that families, especially large families, could be forced to reside in inappropriate and unaffordable housing.”
“It is also concerning that households, on very low incomes, including those on disability and aged pensions, are confronted with so few rental options in the Perth metro area. Seniors and those living with a disability, often already have difficulties in their lives, which can be exacerbated by unaffordable and insecure housing.”
“Improving inefficiencies in the planning system, replacing stamp duty with a progressive land tax, and ensuring social and affordable housing is provided in and around new developments such as Metronet, can improve the availability of affordable accommodation for Perth households,” Mr Hall said.
The Housing Affordability (Rental) – A study for the Perth metropolitan area is a follow up to a study released last November which focused on the impact of housing affordability on home ownership.
14 June 2017
Housing affordability and rental affordability improved in Western Australia in the March quarter 2017, according to the findings of the latest Adelaide Bank/REIA Housing Affordability Report.
The report found affordability in WA’s housing market improved over the quarter, with the proportion of income required to meet loan repayments decreasing 0.9 percentage points to 23.4 per cent.
Affordability also improved over the year, with figures showing the proportion of income required to meet loan repayments in the March quarter 2017 declined by 1.1 percentage points compared to the March quarter 2016.
WA’s rental market was more affordable in the March quarter than it was in the December quarter, with data revealing the proportion of family income required to meet the median rent price decreased by 0.5 percentage points to 18.6 per cent.
Compared to the same time in 2016, the proportion of income required to meet the median rent decreased by 1.6 per cent.
First home buyers
The volume of first home owners in the market decreased by 6.5 per cent in the March quarter to 3,562, and by 1.8 per cent when compared to the March quarter 2016.
The report found that of all first home buyers in Australia, 17.2 per cent were from WA. Additionally, that proportion of first home buyers in WA equated to a significant 31.5 per cent of the state’s owner-occupier market.
The average amount WA first home buyers spent on their loans in the March quarter decreased by 4.1 per cent to $307,800. Affordability in this sector improved further when compared to the same time last year, by 4.9 per cent.
There were 11,301 loans (excluding refinancing) taken out in the March quarter, which is a dip of 6.4 per cent on the December quarter 2016 and 3.2 per cent on the March quarter 2016.
The average loan size amount also decreased in the March quarter, by 3.8 per cent to $337,812. Compared to the same time last year, this figure is down 0.6 per cent.
For more information about the market give us a call on 9475 9622 or email us at firstname.lastname@example.org
07 June 2017
There are fears the launch of a “rent bidding” app will push Aussie rents up even higher. Photo: Jim Rice
Following a lengthy period of falling rents and sharply rising vacancy rates, early signs are now emerging that the Perth rental market may be steadying.
Latest Domain data reports that the median asking rent for a Perth house over April remained at $360 per week, the same as reported over the previous month. Although steady over the month, Perth house rents are 10.0 per cent lower than recorded over April 2016.
Median asking rents for units were also steady at $300 per week over the month but similar to house rents have fallen sharply over the past year – down by 14.3 per cent.
Similar to rents, Perth vacancy rates have also stabilised over April at 3.9 per cent for houses and for units down from 4.2 percent recorded over March to 4.1 per cent. Total vacancy rates for both houses and units combined fell to 3.9 per cent over the month which was the lowest result since March 2016.
Although rents and vacancy rates have steadied over the past month, Perth remains the most tenant-friendly mainland capital with relatively low rents and a wide choice of available homes. By contrast, vacancy rates in most other capitals are generally tight and tightening for both houses and units.
Sydney remains the most expensive capital for tenants with a median asking weekly rent over April of $550 for both units and houses. This is an increase of 3.8 per cent for each over the past year and 52.8 per cent higher than Perth for houses and remarkably 83.3 per cent higher for units.
For more information on property management contact Ron Padua on 0404 428 843 or email email@example.com
24 May 2017
State Treasurer Ben Wyatt today announced the $15,000 First Home Owner Grant (FHOG) for newly built homes will be cut back to $10,000 on 1 July 2017.
Mr Wyatt said the previous Liberal Government’s decision to increase the FHOG by $5,000 in December last year was not an effective mechanism for stimulating additional construction of homes.
“Given the disastrous state of the finances which we have inherited, we need to remove any ineffective spending.
“Ceasing the boost early will allow the State Government to fund higher priority areas while ensuring Western Australian first home buyers continue to be eligible for generous Government assistance,” Mr Wyatt said.
REIWA analysis shows that the introduction of the grant in January 2017 did little to stimulate activity levels in the new-build market.
At the time of the grant increase, REIWA President Hayden Groves said the Institute was concerned the $5,000 boost would widen the gap between established and newly built properties for first home buyers.
REIWA Councillor Suzanne Brown said now that the FHOG is returning to $10,000, REIWA hopes this will help to even out the playing field, albeit marginally, between the established and newly-built market.
“However, there is still work to be done to help first home buyers purchase an established property as the gap remains significant,” Ms Brown said.