Perth’s most in-demand suburbs for houses were at the premium end of the market mostly in the western suburbs with Shenton Park, Nedlands, Floreat, Subiaco and Dalkeith in the top five positions.
Chief Economist at realestate.com.au, Nerida Conisbee, said figures from the July 2019 report showed that while Perth had been in decline for five years, it hadn’t all been bad news.
“There was a brief recovery in 2017, premium suburbs have been doing well and rental demand is high in premium suburbs,” she said.
“Recoveries start with premium suburbs lifting and this has been going on for some time in Perth. Cottesloe saw more than 10 per cent price growth over the past 12 months. Wembley Downs, Subiaco and Claremont grew by more than 5 per cent. Many mining towns are also seeing increases — prices in Newman jumped by almost 40 per cent since mid-last year. When WA mining towns do well, this does seem to flow on to Perth pricing as well.”
Mrs Conisbee said an oversupply of a new building in Perth’s outer suburbs and low levels of job confidence continued to impact the overall median house price.
“The house and land development market is likely to remain challenged for some time,” she said.
“High prices were paid for new homes on the fringe during the boom, people's incomes have gone backwards, and newer homes are cheaper. It will take some time for this issue to be sorted out and it will continue to drag down Perth's overall median price.”
However, the outlook for the apartment sector was more positive.
“Despite a badly timed State Government tax on foreign buyers, property searches out of Singapore and Malaysia remain high. There have also been big jumps out of the UK, India and New Zealand. Perth's proximity to Asia, as well as its big mix of nationalities, is a big opportunity that should be tapped into. Perth is highly liveable with good infrastructure. Add in some jobs growth and the opportunity to attract people and buyers is high.”
Realmark Group Managing Director, John Percudani said it was encouraging to see Perth’s premium suburbs were performing well and that there was a strong opportunity for apartment buyers.
“Buying real estate is all about timing and there are some great opportunities right now to get into the market before it officially rebounds,” he said.
“With low-interest rates, improved job confidence with positive movements in the mining sector and State Government investment in infrastructure plus population numbers turning a corner in WA, there is some real potential for price growth here in the years to come."
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