Signs of a recovery in the Perth property market for 2018 continue but the rebound is likely to be patchy and not reflected across all suburbs or property types.
In their February 2018 residential report, valuers Herron Todd White detail their expected difference in performance between detached trade up properties close to the city versus outlying suburbs as well as expected continuing weak conditions in the multi residential and apartment sector. They describe some suburbs as already blooming but also offer warnings about the house and land package market. The full report can be downloaded from here and you can skip to page 55 for the Perth market overview.
REIWA is also reporting positive news. Properties listed for sale are now below 2015 levels, days on market, being the average time it takes for a property to sell, have fallen to 63 from their previous high of 73 last year and once all transactions are settled, REIWA expects the Perth median house price to have risen by 3.3% to $526,700 for the December 2017 quarter – a change that’s been attributed to increased activity in the $700k+ price bracket. For the full REIWA December 2017 quarterly market update click here.
And finally, the worst also seems to be over for the rental market, with the median rent having held steady at $350 per week for three consecutive quarters to the end of December 2017 and the amount of property available for rent having declined 13.9 per cent compared to the December 2016 quarter. For more information on this part of the market click here.
So in summary, there’s good signs of improvement in some segments of the market which appears to be led by trade up buyer activity in popular, near city suburbs. If you’re in the market for a property in those areas you might want to get a wriggle on. For the rest, it still comes down to supply versus demand, where supply starts to tighten prices will most likely begin improve, but if there’s an oversupply of your type of property relative to demand, don’t expect much from this coming year.
For a more specific update on your property and suburb please call me on 0405 812 273.
Image from REIWA