30 January 2018
Author: REIWA President Hayden Groves via reiwa.com.au
After a solid couple of years of subdued conditions in the Perth property market, we can look back on 2017 as a transitional period that brought about the bottom of the market.
Coming off the back of a very soft 2016, the Perth property market regained its foothold in 2017, with stable listings, sales and median house price levels observed.
The stability we are now witnessing across key market indicators is a welcome change.
What to expect in 2018
The forecast for 2018 is that the Perth market will moderately and steadily improve, however REIWA cautions against expectations of rapid growth in either the established housing or rental markets over the coming year.
In 2017 there was an average of 489 property sales recorded each week, which REIWA forecasts will lift to approximately 500 sales per week over the next six months. If sales volumes continue to trend at current levels, listing volumes will begin to fall, creating upward pressure on prices as demand builds.
We saw listings for sale start to level out and decrease last year, peaking at just over 15,000 in early 2017, before reaching a low of just over 13,000 in September.
With new dwelling activity set to decline in 2018, REIWA forecasts the number of properties for sale in Perth to remain at current levels over the next year, a level commensurate with market parity.
Perth rental market
Perth’s rental market also appeared to turn a corner in 2017, with listings declining from 11,000 in January to just over 9,300 by December.
Over this same time, leasing activity levels were strong, with approximately 1,180 rentals leased each week. If this trend persists, the balance between supply and demand of stock will continue to improve in 2018.
In a welcome change for investors, Perth’s median rent price has stabilised at $350 per week since April last year. While we don’t anticipate there will be significant growth to median rent prices in 2018, they’re not likely to fall either with quality family homes in particular in strong demand.
The Perth market is no longer experiencing significant declines in median house and rent prices, nor are we seeing listings for sale and for rent increasing at the rate they once were.
As market conditions improve and confidence returns, competition among buyers will inevitably increase.
If you’re thinking about purchasing your first home, trading-up or investing in property, my advice is to act sooner rather than later and take advantage of the stable and favourable market conditions.
To discuss your valuable investment with our Business Development Manager Sarah Morgan, give us a call on 9475 9622