So what can we expect from the Perth property market in 2020? In addition to the speculation about market recovery, there are industry related legislative changes that will be rolled out and up for review this year relevant to landlords, tenants or those that own or are buying or selling a strata property. Here’s a brief overview.
Firstly, the changes.
This year we’ll see a review and reforms to the Residential Tenancies Act which will affect both landlords and tenants. Its been more than 10 years since the act was reviewed and the Department of Mines, Industry Regulation and Safety (DMIRS for short) is currently undertaking consultations with the community on issues and options. Issues such as a tenants right to keep pets, the ability for a tenant to break lease early in certain circumstances without penalty and landlord obligations to keep premises in good repair are only three of a very long list of issues being considered. For more information, to submit feedback or register for updates on the review click here.
New strata laws were passed by Parliament at the end of 2018 and the first stage of those reforms, being the Strata Titles Amendment Act 2018, will be announced soon. Changes include the requirement for sellers of strata properties to provide more information to buyers upfront, such as copies of minutes from the last AGM and the statement of accounts, and a simplified process for strata dispute resolution. To read and find out more, check out the dedicated website strata.wa.gov.au where you’ll find information on what’s changing and why.
Now to the market!
The last two months have seen the overall Perth market steady in terms of price which is a welcome change from what we saw through most of 2019. Anecdotally, we’re also very encouraged by the level of buyer enquiries and numbers at home opens so far this month.
The majority of buyer activity still seems to be in the trade up market and you need to remember that some markets are likely to recover more quickly, or may already be showing signs of recovery, ahead of others. Currently it’s taking an average of 71 days for property to sell, but select suburbs are close to half that. Pay close attention to what’s happening in the specific suburbs that you’re buying or selling in as well as the specific property type – supply and demand can vary very widely between suburb and property types and the overall market statistics may be at complete odds with a specific local micro market.
If you’re a landlord, rental vacancy rates and rents themselves are remaining steady at 2.3% and $350 per week respectively and in our office we’re finding it easy to secure quality tenants provided the a property is priced in line with the market accordingly.
Our hope and expectation for 2020, all things being equal, is that the continued low interest rate environment and slowly improving local economic conditions will continue to assist the market to stabilise and improve, but again this won’t be consistent across all market sectors and any growth is likely to be modest. If you’ve been holding off for a big market bump, it’s unlikely 2020 is going to provide one.
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If you’re thinking of selling in the suburbs surrounding or nearby Beaufort Street, I’d love to help. Call me on 0405812273 or email me at [email protected]
The opinions expressed above are the writers own. Readers should seek their own independent advice prior to making any financial or property related decisions.
Image from reiwa.com
