Buyer Confidence increasing, according to Reiwa (May 2018)
Buyer confidence is increasing as Perth’s property market experiences a significant uptick in sales activity according to REIWA data.
The Perth property market is definitely on its way to recovery with significant sale activity for the March quarter comparative to March quarter last year.
During the March quarter house sales increased by 0.5 per cent to $517,000 while the median unit price remained the same at $407,000.
”Buyers are beginning to compete with multiple offers/bids particularly on homes in aspirational suburbs in particular. Prices are stable with anticipated improvements by the year’s end” as quoted by Reiwa President, Haydon Groves.
Despite a general slowdown in the Perth Property market, close examination of data reveals that some areas of Perth are selling more quickly than they did during the property “Boom”. Active trade-up buyers, competing and pushing up values are attributing to this trend.
This is a great time for First home buyers to buy in Perth, with more affordable prices and lower interest rates to secure their first property.
“There is a tonne of affordable housing in Perth and some of the best rental yields in Australia”, quoted, Craig Abbott, General Manager WA, Raine & Horne.
Wellard, in the City of Kwinana, is a potential Perth property hotspot, noted Mr Abbott. He also nominated Jarrahdale, a small historic town 45 km south-east of Perth, and Byford in the city’s south-east, as locations to watch.
“The beauty of these locations is that they offer first home buyers the opportunity to secure 3-bedroom houses for under $500,000,” said Abbott. The median price for a 3-bedroom house is $420,000 in Wellard, and $480,000 in Jarrahdale.
“I think these locations will also start to attract disaffected investors from Sydney and Melbourne who are tired of being priced out of the market, especially with yields of up to 6% available.”
Wellard’s long-term real estate prospects are being buoyed by its excellent transport infrastructure, noted Abbott.
“Wellard is on the train line and it has excellent bus services into the Perth CBD,” he said. In Perth’s south-east, Byford, with a median house price of $420,000, is red-hot due to its location, improved infrastructure and affordability, according to Paul Curran, Principal of Raine & Horne Rockingham.
“Byford is part of the wonderful Shire of Serpentine Jarrahdale and only five years ago was virtually a country town,” said Curran. (Real Estate Conversation 2017)