How to buy a property in Perth in the current market early 2024
First, let us give a review of the national market to see where Perth sits in comparison.
Source: CoreLogic 01 Feb 2024
In January, Australia’s housing market national Home Value Index (HVI) rose by 0.4%.
While some capitals experienced declines, cities like Perth, Adelaide, and Brisbane saw notable increases. Perth emerges as a top performer, with home values rising by 1.6% in January and 16.7% over the past year, despite remaining relatively affordable.
The gap between median capital city house and unit values reached a record high of 45.2% in January.
House values surged 11.0% higher since the upswing began, significantly outpacing the 6.9% increase in unit values.
This trend suggests a preference for detached homes among Australian buyers.
Regional areas, particularly in Western Australia, South Australia, and Queensland, are showing robust growth, reaching record highs in dwelling values.
Despite affordability concerns and economic uncertainties, home sales remain steady, buoyed by factors like migration and tight rental markets.
With this data, it can be determined how Perth’s real estate market has undergone a seismic shift, with listings dropping to 2,684 from the usual 14,000-17,000 range.
This scarcity, coupled with increased demand, has intensified competition. Buyers must act swiftly, leveraging digital alerts and embracing transparent auctions. Meanwhile, sellers navigate the choice of off-market sales versus broader market exposure.
In this dynamic environment, agility and informed decision-making are essential. By staying informed and adopting innovative strategies, both buyers and sellers can navigate Perth’s evolving real estate landscape with confidence.
Why choose Perth?
In the realm of real estate, Perth stands out as a beacon of affordability amidst a sea of soaring prices in other Australian states. With median housing prices notably lower than its eastern counterparts, Perth has become a magnet for both interstate buyers seeking better deals and migrants from overseas looking to establish roots in this vibrant city. However, navigating Perth’s competitive housing market requires savvy strategies and a keen understanding of emerging trends.
So, How should I begin?
You have the option to utilize the features provided by internet real estate listing portals to set up alerts for specific suburbs that align with your borrowing capacity. By doing so, you ensure that the moment a property matching your criteria is listed, you receive a notification. This allows you to promptly submit an enquiry and schedule a viewing, giving you a competitive edge in securing the property you desire.
When browsing for properties, it’s advisable to explore options slightly below your borrowing capacity. With multiple offers becoming commonplace, the market often resembles an auction environment. Some agents have transitioned from traditional pricing methods to approaches where there’s no upper limit on the purchase price. In scenarios with multiple offers, they leverage digital negotiating platforms, ensuring transparency for purchasers throughout the negotiation process, essentially creating a digital auction with full visibility.
Another method gaining popularity is the Set Date Sales This involves listing properties for sale through a tender process. Vendors have the opportunity to review all offers and select the one that best suits their circumstances. They may opt to negotiate the price privately if the conditions align better with a particular offer, even if it doesn’t offer the highest price.
Once you know your borrowing capacity and your affordable price range – look at what kind of market you are buying in and adjust to it. Buying for investment may have different points of analysis than buying for the family home which has a more emotional component.
Whilst there is the high level macro market data, some areas have their own market drivers and so their data may show a contract picture that presents an opportunity for you.
Opportunities exist where others are not looking. It is imperitive that you know your numbers and focus on a market that suits your price range and then learn the drivers of that area or suburb.
For the long term buyer/investor, location is always an important component in your buying decision. As the CBD expands, land values rise in a radiating radius from the centre and opportunities start to surface. Where is future major infrastructure planned, is one question to ask?
To sum it up, embarking on your property journey requires a strategic approach tailored to the dynamic real estate landscape which changes constantly by internal forces or external decisions made by Government, keeping on educating yourself and keeping an eye on the market movements over time is a worthwhile endeavour to support your success.
We at PWC Realty are here to support you in this journey and right now we are looking for new listings and adding to our rental portfolio. Put our professional, friendly approach to work for you.
To book a consultation call Jo Lindo on 0429 092 110 and Douglas McNaught on 0407 135 212
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